On the back of substantial subsidy funds, the Nigerian National Petroleum Company Restricted (NNPC) has not made remittances into the federal account for the seventh month in a row.
Over the past few months, the NNPC has deducted monies that were supposed to be transferred to the Federation Accounts Allocation Committee (FAAC) to cover the cost of the gasoline subsidy. As a result, the NNPC has not deposited any income.
According to the most recent report that was released by the NNPC, the amount of N448.78 billion was removed in the month of July to cover the subsidy for gasoline.
The information that was collected from the report indicated that the country had spent a total of N2.04 trillion on gasoline subsidies over the course of seven months, with N1.04 trillion being carried forward.
In spite of the possibility for increased income from an average price of $111 per barrel for oil and an oil production rate of 1.08 million barrels per day, there was no remittance received in the month of July.
Learn more about how Nigeria is going to deal with the compelling option of an N6 trillion gasoline subsidy in 2023.
In January, February, and March of 2022, the total amount of monies allocated for gasoline subsidies was 210.38 billion, 219.78 billion, and 245.77 billion, respectively. In the months of April, May, and June, respectively, the nation racked up expenditures totaling N271 billion, N327.07 billion, and N319.18 billion.
However, according to the report, the country’s total gross income from crude oil and gasoline sales was N400.47 billion. This figure represents a decrease of 10.07% when compared to the amount of money that was received from the gasoline subsidy during the same month.
It was noted that the outstanding balance that would be carried forward would be N1,044,514,420,619.73. “The Worth Shortfall on the Importation of PMS recovered from July 2022 revenues is N448,782,119,154.91,” the document stated.
In the meantime, Mele Kyari, the group CEO of NNPC, made the statement in July that the oil company would charge the federal authorities a premium if they wanted to withhold funding for the gasoline subsidy.
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The article NNPC has gone seven consecutive months without remitting taxes to the federal government was originally published on Zbout.