NNPC Deducts States’ N328bn From Federal Account In April

The Nigerian National Petroleum Company (NNPC) Limited has announced the deduction of N328 billion from state governments’ monthly contribution to the federal account for April 2022.

The country’s oil company made this known in its Federation Accounts Allocation Committee (FAAC) report for March published on its website over the weekend.

According to the report, NNPC said it failed to contribute a kobo to the federation account in the last two months because it paid N430.165bn as fuel subsidy.

The NNPC stated that in January this year the sum of N210.38bn was used to subsidise petrol, while N219.78bn was spent as subsidy in February.

It said, “The estimated value shortfall of N328,004,248,900.01 (consisting of N253,004,248,900.01 for February 2022 recovery plus the balance of November 2021 spot cargo arrears of N75,000,000,000.00) is to be recovered from March 2022 proceed due for sharing at the April 2022 FAAC meeting.”

It further noted that a value shortfall of N2.7m was charged for the month (of March) which comprises N2.0m for January 2022 plus part of the November 2021 spot cargo arrears of N2.4m.

The oil company stated that the overall NNPC crude oil lifting of 9.94 million barrels (export and domestic crude) in January 2022 recorded a 22.26 percent increase relative to the 8.13 million barrels lifted in December 2021.

It said Nigeria recorded 1.39 million barrels per day production in January 2022, citing the Organisation of Petroleum Exporting Countries (OPEC).

NNPC stated that crude oil export revenue received in February 2022 amounted to $2.73 million, while domestic gas receipts in the month were N13.10bn.