NNPC Fails To Sell Enough Crude Oil To Pay For Fuel Subsidy

The Nigerian National Petroleum Company (NNPC) has failed to sell enough crude oil to offset its petrol subsidy debt to oil marketers in Nigeria.

Data obtained from NNPC’s presentation to the Federation Account Allocation Committee (FAAC) for July showed that NNPC incurred a petrol subsidy payment of N448.7 billion in July.

The subsidy payment in July is a record high since the re-emergence of subsidy payment early last year.

Interestingly the document showed that just about N400 billion was the gross domestic crude oil and gas receipts.

This implies that the amount spent on petrol subsidy for the month exceeded the total oil sold for the month by roughly N48 billion.

The report reads: “The sum of N400,469,663,160.14 is the gross domestic crude oil and gas revenue for the month of July 2022.

“The value shortfall on the importation of Premium Motor Spirit or petrol recovered from July 2022 proceeds is N448,782,119,154.91, while the outstanding balance carried forward is N1.044,514,420,619.13.”

Other details from the report shows that Nigeria LNG feedstock gas receipt was $93.88 million, inclusive of $9.39 million arrears, with $2.04 million being miscellaneous receipts, the NNPCL document stated.

Also, like it has done since this year, the NNPCL did not remit a kobo to the federation account.

In fact, the column for that purpose has now been deleted from the document.

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