Business
NNPC Remittances To FAAC Slide By N1.58trn In 10 Months

The Nigerian National Petroleum Company (NNPC) remittances to the federation account have plunged by N1.581 trillion in 10 months.
Data obtained from the NNPC on Sunday showed that remittances by the oil company to the federation account plunged by N1.581tn between January and October, this year.
The drop, according to NNPC, was due to the humongous sums spent on subsidising Premium Motor Spirit, popularly called petrol, pipeline security and maintenance cost, among others during the 10-month period.
Figures showed that N2.093tn was the net revenue that should have been remitted to the Federation Accounts Allocation Committee (FFAC) for sharing among the three tiers of government between January and October 2021.
The amount actually shared by the three tiers of government during the 10-month period was put at N511.667bn, while N1.581tn could not be shared as the sum was used to subsidise petrol, repair of vandalised pipelines, among others.
This situation has compelled economic experts to advise state governments to start looking inwards, develop their Internally Generated Revenues and cut down on governance cost to stay afloat going by the plunge in what they share on monthly basis from the federation account.
An analysis of the NNPC data indicates that petrol subsidy alone gulped as much as N1.027tn during the period, an amount that almost doubled what was shared by the three tiers of government.
It was also observed that pipeline security and maintenance cost consumed N42.76bn during the 10-month period, while frontier exploration services took N27.95bn, among other expenditures.
The projected monthly remittance as captured in the report by the NNPC was N209.307bn, but this target was never met all through the 10 months, as petrol subsidy kept cutting down the funds.
The monthly remittances showed that in January, February, March and April, the NNPC remitted N90.86bn, N64.161bn, N41.184bn and zero respectively to FAAC.
The national oil firm remitted N38.608bn, N47.162bn, N67.28bn, N80.03bn, N67.533bn and N14.85bn to FAAC in May, June, July, August, September and October respectively.
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