The Nigerian National Petroleum Company (NNPC) Limited has revealed that N1.301trilion was spent as subsidy on Premium Motor Spirit (PMS), popularly called petrol, and refinery rehabilitation between January and May this year.
This was contained in NNPC Limited’s latest presentation to the Federation Account Allocation Committee (FAAC) meeting for the month of June 2022.
While spending on petrol subsidy gulped N1.274 trillion during the five-month period, spending for refinery rehabilitation gulped N9.11 billion in each of the months of January, March and April, amounting to N27.33 billion.
Statistics as contained in the report show that there has been a steady rise in monthly subsidy payments by the federal government, with N210.38 billion, N219.78 billion, N245.77 billion, N271.59 billion and N327.1 billion spent in January, February, March, April and May 2022 respectively.
Subsidy spending by the NNPCL is called under-recovery/value shortfall, and the corporation deducts it every month before making any remittance to FAAC. The corporation has not made any remittance to the federation account this year.
In its latest presentation to FAAC, the national oil firm also informed the committee that it would deduct N845.15 billion from what would be shared by the committee next month.
“The value shortfall on the importation of PMS recovered from May 2022 proceeds is N327,065,907,048.06, while the outstanding balance carried forward is N617bn,” NNPC stated.
It added, “The estimated value shortfall of N845,152,863,012.97 (consisting of arrears of N617bn plus estimated May 2022 value shortfall of N227,721,200,478.23) is to be recovered from June 2022 proceed due for sharing at the July 2022 FAAC meeting.”