NNPC records N1.29trn revenue deficit in 9 months

The Nigerian National Petroleum Corporation (NNPC) says it recorded a revenue deficit of N1.29 trillion from January to September this year.

This is according to NNPC’s September presentation to the Federation Account Allocation Committee (FAAC).

In 2021, the state oil company had forecasted a monthly revenue of N414.9 billion, resulting in a trajectory of N4.979 trillion for annual gross revenue — but it has since recorded a shortfall of N1.29 billion in nine months.

In the first nine months, NNPC revenue dropped to N2.44 trillion — below its projection of N3.73 trillion.

In January, its posted N195.62 billion revenue, lower than expected income by 112.12 percent. 

In February, it also recorded a dip in revenue at N191 billion and increased to N224.5 billion in March. 

In April, when oil prices were perpetually low, it recorded a sharp decline in revenue to N156 billion but recovered to N320.31 billion in May. 

In June and July, the corporation’s revenue fell to N295.39 billion and N270.40 billion, respectively.

In August, NNPC revenues bounced back, earning N389.1 billion and N400.44 billion at the end of September.

Despite these meagre earnings, NNPC deducted N25.37 billion in February as PMS under-recovery, also known as fuel subsidy. In March, it spent N60.39 billion and N61.99 billion in April. In May, it followed suit with N126.29 billion and N164.33 billion was pulled out in June. In July, it paid N103.28 billion and 173.13 billion in August.

In September, it paid 149.28 billion, amounting to N864.07 billion as fuel subsidy payments in nine months.

These monthly deductions affected its monthly revenue committed to the FAAC account, resulting in a deficit of N1.38 trillion in nine months.