The Nigerian National Petroleum Company Limited (NNPCL) spent 94.77 per cent of its revenue on petrol subsidy payment in August, latest data from the national oil company has affirmed.
The development, which clearly signposts grim outlook for the economy, came the same weekend the police high command disclosed that the Police Special Task Force on Petroleum and Illegal Bunkering (IGP-STFPIB) seized 123 oil tankers deployed for the purpose of crude oil theft.
That was as Bayelsa State Governor, Senator Douye Diri, alongside some leaders of the Ijaw National Congress (INC) and other stakeholders announced they had succeeded in calming frayed nerves arising from the pipeline surveillance contract awarded by the federal government to Government Ekpemupolo a.k.a Tompolo.
The information from the national oil company’s monthly presentation to the Federation Account Allocation Committee (FAAC) meeting at the weekend showed that NNPCL generated N553.99 billion in revenue from oil and gas operations in August 2022.
However, the subsidy payment or what the firm terms under-recovery, which was deducted for the month, was N525.71 billion, according to a THISDAY review. The revenue made by the national oil company was mainly from Joint Ventures (JVs) and Production Sharing Contract (PSC) arrangements.