The Nigerian National Petroleum Company (NNPC) Limited says it would reconcile subsidy deductions with the federation. The Federation Account Allocation Committee (FAAC) had in May asked NNPCL to refund over N2.1 trillion to the federation account.
NNPCL made its position known in a tweet on its official Twitter handle yesterday under a post titled ‘Petrol Subsidy Fact Sheet’. The company contrary to widespread believe equally said it has made petrol subsidy payments to marketers since 2016 when it became the sole importer of petrol, adding that NNPC Limited will no longer be the sole importer of petroleum products.
NNPCL had said it deducted N152.85 billion as a shortfall for the importation of petrol (subsidy) in November 2022 during its monthly presentation to FAAC meeting on Wednesday, January 17, 2023. Subsidy or under-recovery is the underpriced sales of premium motor spirit (PMS), better known as petrol.
However, FAAC documents showed that due to deductions for subsidy payment, the oil company had zero contribution to the federation revenue account in the month under review. In January, February, and March 2022, petrol subsidy payments gulped N210.38 billion, N219.78 billion, and N245.77 billion, respectively. In April, May, and June, the country spent N271 billion, N327.07 billion, and N319.18 billion, respectively.
