Nigeria’s Petrol Subsidy Payments Hit N2.04trn In Seven Months

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The Nigerian National Petroleum Company (NNPC) Limited says it deducted N448.78 billion in July to cater for subsidy payments.

The company said in its monthly presentation to the federation account allocation committee (FAAC) meeting on August 24th, 2022.

The figures showed that the country has paid N2.04 trillion to offset subsidy payments in the 7-month period — while the payment of N1.04 trillion has been carried forward.

Nigeria’s Petrol Subsidy Payments Hit N2.04trn In Seven Months

For the seventh month in a row, the company also failed to make remittances into the federation account owing to huge subsidy payments.

It, however, raked in N400.47 billion as gross domestic crude oil and gas revenue — 10.07 percent below petrol subsidy payment in the same month.

The month’s zero remittance came despite the potential to boost revenue with an average oil price of $111/barrel and 1.08 million barrels per day (bpd) oil output.

Over the months, the NNPC has deducted funds meant to be remitted to the federation account (FAAC) to cover for petrol subsidy, resulting in zero revenue remittances.