NNPC records ZERO revenue from oil export as subsidy gulps another N199bn

The Nigerian National Petroleum Company (NNPC) says it recorded zero revenue from crude oil export as fuel subsidy gulped another N199 billion in October.

Despite recording zero revenue from oil export, the state-owned oil firm said the country produced an average of 1.417 million barrels per day in the month of September.

This is contained in NNPC’s November 2021 FAAC report released over the weekend.

TheCable understands that Nigeria’s oil output belongs to the NNPC and other oil companies through its joint venture arrangements.

The corporation also said it paid N14.85 billion to the federation account allocation committee (FAAC) account for the month under review.

It added that the value shortfall for petrol will be deducted from November 2021 proceeds — meant to be remitted to FAAC in December. 

“The October 2021 value shortfall of N199,007,758,422.75 is to be recovered from the November 2021 proceeds due for sharing at the December 2021 FAAC meeting,” NNPC said.

According to an analysis by TheCable Index, the corporation had been deducting from oil revenue to fund the nationwide unpriced sales of petrol to Nigerians in the last 11 months. 

In October, fuel subsidy payment stood at N163 billion, culminating in N1.03trn from January to October, according to checks by TheCable.

In September, it was 149.28 billion. In August, the under-recovery cost of PMS was N173.13 billion. For July and June, it was N103.28 billion and N164.33, respectively. 

In May, the cost of fuel subsidy amounted to N126.29 billion. 

Also in April, March, and February, the under-recovery of PMS amounted to N61.96 billion, N60.39 billion, and N25.37 billion, accordingly.

In January, there was no record for under-recovery.

In the last 10 months, NNPC failed to meet its revenue projection of N2.09 trillion — but was only able to remit N511.66 billion into the federation account, representing a 75 percent shortfall.

In April, it did not remit any amount of its oil and gas proceeds to FAAC due to the pressure of funding fuel subsidy.