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HomeTop NewsNigeria spends N1.27 trln on fuel subsidy in 5-month, says NNPC

Nigeria spends N1.27 trln on fuel subsidy in 5-month, says NNPC

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The Nigerian National Petroleum Company (NNPC) Limited has failed to remit revenue to the federation account as the company claimed to have spent N327.07 billion as subsidy payment from revenue generated during the period.

In a monthly presentation to the federation account allocation committee (FAAC) meeting on Wednesday, June 22, NNPC attributed the non-remittance to the federation account to deduction at source for the shortfall in the importation of petrol (subsidy) in May 2022.

This would be the first time this year the corporation has failed to remit funds into the federation account as a result of the deduction for fuel subsidy.

Cumulatively, the NNPC has expended N1.27 trillion on petrol subsidy in the first five months of the year, representing about 31 per cent of the N4 trillion provision in this year’s fiscal document.

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The NNPC report has projected that it would recover the sum of N845.15 billion as a value shortfall from June 2022 proceed.

“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 N617 billion,” NNPC said.

“The estimated Value Shortfall of N845,152,863,012.97bn (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.”

In January, February and March 2022, petrol subsidy payments gulped N210.38 billion, N219.78 billion, and N245.77 billion, respectively.

In April, Nigeria spent N271 billion to cater for petrol subsidies.

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