NNPC spends ₦623.16 billion on fuel subsidy

The Nigerian National Petroleum Corporation (NNPC), said it has spent ₦623.16 billion on under recovery otherwise known as subsidy from January to November, 2018.

The Corporation said it made this known to the Federation Account Allocation Committee (FAAC) at the last meeting in Abuja where revenue generating agencies gave account of their performances in the year.

The NNPC in its report dated 19th December, 2018 revealed that it also has an arrears of ₦67.23 billion for deductions made from FAAC.

The report said there was a total FAAC deduction of N676.49 billion comprising of N599.74 billion as under recovery for Direct Sales Direct Purchase (DSDP) arrangement and N23.43 billion as under recovered from it’s refineries.

The document said that the amount incurred by the NNPC as under-recovery was deducted from the Federation Account as follows: January ₦45.78 billion, February ₦59.51 billion, March ₦34.03 billion, April ₦77.9 billion and May ₦88.9 billion.

The breakdown of the ₦623.16 billion under-recovery showed that ₦51.24 billion was incurred in January, while February, March and April recorded ₦58.66 billion, ₦36.09 billion, and ₦82.4 billion respectively.

In the month of May, the amount of under-recovery incurred by NNPC on PMS dropped to ₦36.87 billion, but rose to ₦53.41 billion in June, ₦52.43 billion in July and ₦63.18 billion in the month of August.

In the month of June 2018, the Corporation deducted about ₦68.6 billion, in July, August, September, October and November, it made deductions of ₦52.5 billion, ₦60.6 billion, ₦71.56 billion, ₦51.18 billion and ₦65.86 billion respectively.

Apart from the deductions from FAAC, the amount spent on subsidy, or as under-recovery by the NNPC went up to ₦71.8 billion in September, before dropping again to ₦51.18 billion and ₦65.86 billion in the months of October and November respectively.

From the document, it was indicated that NNPC is currently subsidising Premium Motor Spirit, popularly known as petrol through its under recovery arrangements.

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