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HomePolicyNNPC subsidy take climbs to N2.6tn as FAAC slumps...

NNPC subsidy take climbs to N2.6tn as FAAC slumps by N281 billion, to N673 billion

The Nigerian National Petroleum Company Limited (NNPCL) continued its zero funding for the federation account in August, extending its prolonged non-remittance to the federal, state and local governments to eight months.

The Nigerian National Petroleum Company Limited (NNPCL) continued its zero funding for the federation account in August, extending its prolonged non-remittance to the federal, state and local governments to eight months.

The development came against the backdrop of the company’s deduction for petrol subsidy, which climbed to N2.565 trillion with N525.71 billion deducted in the month under review.

The national oil company has also denied any involvement in the operation of any secret bank account, stating that the Office of the Accountant General of the Federation (OAGF) was aware of its financial transactions.

Meanwhile, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote, has said the implementation of the Nigerian Oil and Industry Content Development (NOGICD) Act attracted $60 billion in Foreign Direct Investments (FIDs) into Nigeria in the last 12 years.

The legislation, according to Wabote, has also yielded an in-country retention value of $7 billion year-on-year from the annual $21 billion capital spending in the country’s oil and gas industry.

An analysis of NNPC’s monthly presentation to the Federation Account Allocation Committee (FAAC) at the weekend, further showed that the NNPCL has so far spent N2.565 trillion on the controversial subsidy this year.

Information from the FAAC meeting had earlier revealed that the money available for distribution among the three tiers of government for the month slumped by N280.948 billion to N673.137 billion when put aside the N954.085 shared in July.

Of the amount, the federal government received N259.641 billion, the states received N222.949 billion while the local government councils got N164.247 billion.

 “The sum of N525,714,373,874.60 being federation account share was used to defray value shortfall/subsidy for the month,” the NNPCL stated in a document quoted by TheCable.

According to the national oil firm, in January, February, March, and April 2022, the petrol subsidy gulped N210.38 billion, N219.78 billion, N245.77 billion and N271.13 billion respectively.

Furthermore, in May, June, and July, the country spent N327.07 billion, N319.18 billion and N448.78 billion respectively before the hugest deduction of N525.71 billion in the latest instance.

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