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N270.83bn For Deduction From December FAAC – NNPC



The Nigerian National Petroleum Corporation (NNPC) petrol subsidy value shortfall of N270.83 billion will be recovered from the December, 2021 proceed due for sharing at the January, 2022 FAAC meeting.

This was contained Corporation’s presentation to the FAAC meeting held in Abuja last week and obtained by LEADERSHIP yesterday.

In another development, the corporation said a total sum of ₦203.73billion was realized as proceeds for the sale of white products in the month of July 2021 by the Petroleum Products Marketing Company (PPMC), a downstream subsidiary of the NNPC Ltd.

This was contained in the July 2021 figures of the NNPC Monthly Financial and Operations Report (MFOR), the 72nd edition of the Report, a statement from NNPC spokesman, Mallam Garba Deen Muhammad, indicated yesterday.

The earlier report noted the the value shortfall consisted of N220.11 billion for November and  N50.72 billion deferred for recovery in December, 2021 FAAC Report. This is as monthly payment on petrol subsidy reached a two-year peak of N220.11 billion in November, with the NNPC deducting the amount from its remittance to the Federation Account.

FAAC Shares N675.946bn Nov Revenue To FG, 36 States, 774 LGAs

NNPC, in a presentation to the Federation Accounts Allocation Committee, FAAC, meeting held last week, charged the committee a total of N270.8 billion for the month of November and outstanding from the month of October.

The amount for November brings the total figure for petrol subsidies in the first 11 months of 2021 to N1.446 trillion.

According to data released on Tuesday by the Corporation, “the sum of N172,784,505,734.79 was the gross Domestic crude oil and Gas revenue for the month of November, 2021.

“The recoveries were: Strategic Holding Cost and Pipeline repairs amounting to N174,518,095.89, Product losses worth N2,065,202,202.03. The value short fall for the month is N182,120,527,275.95.

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“However, the sum of N131,400,236,846.95 was recovered while N50,720,290,429.00 was deferred for recovery in subsequent month to enhance federation remittance.

“The Estimated value shortfall of N270,831,143,856.56 is to be recovered from the December, 2021 proceed due for sharing at the January, 2022 FAAC meeting.

“This value shortfall consists of N220,110,853,427.56 for November and N50,720,290,429.00 deferred for recovery in December, 2021 FAAC Report.”

The report also disclosed that Crude Oil export revenue received in November 2021 amounted to $4.18 million while Domestic Gas and other receipts in the month was N16.63 billion.

“Feedstock valued at $51.85 million was sold to NLNG during the period out of which $Nil was received during the month. The Expected receipts slipped into the next month.

“The sum of $132.77 million being miscellaneous receipts, Gas and Ullage fees and Interest income was received in November 2021,” it added.

Meanwhile, further highlights of the MFOR for July 2021 indicated that The report also revealed that total revenues generated from the sales of white products for the period July 2020 to July 2021 stood at over ₦2.563 trillion where PMS contributed about 99.67% of the total sales.

Similarly, a total of 1.544billion litres of petroleum products were sold and distributed by the PPMC, in the month of July 2021 with PMS accounting for 99% of total volume.

Total sale of petroleum products for the period July 2020 to July 2021 stood at 19.535billion litres and Premium Motor Spirit (PMS) accounted for 99.73% of total volume, the report stated.

The report also indicated a 5.23 percentage increase in the average daily gas supply to power plants in the month of July 2021 which stood at 759million standard cubic feet of gas per day (MMSCFD), equivalent to power generation of 3,250MW against the June 2021 figure of 721mmscfd to generate 3,181MW.

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According to the report, national gas production in July 2021 increased by 3.99% at 232.69Billion Cubic Feet (BCF) compared to output in the previous month, translating to an average daily production of 7,502.28mmscfd.

For the period July 2020 to July 2021, a total of 2,891.53BCF of gas was produced representing an average daily production of 7,305.43mmscfd.

Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 58.67%, 20.45% and 20.89% respectively to the total national gas production.

In the Downstream sector, to ensure sustained increase and effective distribution of petroleum products, especially Premium Motor Spirit (PMS), across the country, the NNPC has continued to diligently monitor the daily stock of petrol to achieve success in this regard.

In July 2021, the MFOR noted that 42 pipeline points were vandalized representing 10.64% decrease from the 47 points recorded in June 2021.

This month, Port Harcourt area accounted for 40% and Mosimi Area accounted for 60% of the vandalized points.

In the Upstream, NNPC recorded total export receipt of $191.26million in July 2021 as against $188.00million in June 2021.

Receipts from crude oil amounted to $12.95million while gas and miscellaneous receipts stood at $78.69million and $99.61million respectively.

Total crude oil and gas export receipt for the period July 2020 to July 2021 stood at $1.73billion.

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