Nigerian National Petroleum Corporation (NNPC) secured oil pipelines, including their maintenance in month of November 2018 to the tune of N15.5 billion, document sighted has revealed. Analysis of breakdown of the cost incurred also covered marine distribution and strategic holding. Going by detailed presentation of the breakdown believed to have been presented to the Federation Accounts Allocation Committee (FAAC) in line with agreement that all expenses incurred by oil firm be presented to FAAC for reimbursement, showed that the sum of N1,556,985,671.03 was spent on security and maintenance; pipeline and other facilities repairs cost N154,293,264.32; marine distribution N8,746,257,727.19; pipeline management cost gulped N3,353,698,696.33 and strategic holding cost N1,724,039,089,22.
This was as the corporation incurred oil subsidy to the tune of N623.16 billion between January and November this year, according to NNPC in its presentation before FAAC meeting. The state-owned oil firm is the sole importer of Premium Motor Spirit (PMS), otherwise known as petrol, as major marketers and independent markers backed out on the premise of poor under recovery which put their participation at disadvantage position.
The government had, before now, kept mute on subsidy provision until lately when it became an issue at the National Assembly, making the NNPC to admit it made provision for subsidy. Details of NNPC’s fact sheet presented to FAAC showed that apart from the N623.16 billion, there is also arrears of N67.23 billion, bringing the total amount to N676.49bn. Out of the N676.49 billion, the sum of N599.74 billion was incurred as under- recovery under the Direct Sales Direct Purchase arrangement while the sum of N23.43 billion was underrecovered from its refinery.
Further breakdown of the N623.16 billion underrecovery showed that the sum of N51.24 billion was incurred in January while February, March and April recorded N58.66 billion, N36.09 billion, and N82.4 billion respectively. In the month of May, the amount of under-recovery incurred by NNPC on PMS dropped to N36.87 billion. It, however, rose to N53.41 billion in June, N52.43 billion in July and N63.18 billion in the month of August. The amount incurred as under-recovery by the corporation went up to N71.8 billion in the month of September before dropping down to N51.18 billion and N65.86 billion in the months of October and November respectively.
The report stated that the amount incurred by the NNPC as under-recovery was deducted from the Federation Account thus: January N45.78 billion, February N59.51 billion, March N34.03 billion, April N77.9 billion and May N88.9 billion. In June, the corporation deducted about N68.6 billion while July, August, September, October and November recorded deductions of N52.5 billion, N60.6 billion, N71.56 billion, N51.18 billion and N65.86 billion respectively.
Source:New Telegraph
This was as the corporation incurred oil subsidy to the tune of N623.16 billion between January and November this year, according to NNPC in its presentation before FAAC meeting. The state-owned oil firm is the sole importer of Premium Motor Spirit (PMS), otherwise known as petrol, as major marketers and independent markers backed out on the premise of poor under recovery which put their participation at disadvantage position.
The government had, before now, kept mute on subsidy provision until lately when it became an issue at the National Assembly, making the NNPC to admit it made provision for subsidy. Details of NNPC’s fact sheet presented to FAAC showed that apart from the N623.16 billion, there is also arrears of N67.23 billion, bringing the total amount to N676.49bn. Out of the N676.49 billion, the sum of N599.74 billion was incurred as under- recovery under the Direct Sales Direct Purchase arrangement while the sum of N23.43 billion was underrecovered from its refinery.
Further breakdown of the N623.16 billion underrecovery showed that the sum of N51.24 billion was incurred in January while February, March and April recorded N58.66 billion, N36.09 billion, and N82.4 billion respectively. In the month of May, the amount of under-recovery incurred by NNPC on PMS dropped to N36.87 billion. It, however, rose to N53.41 billion in June, N52.43 billion in July and N63.18 billion in the month of August. The amount incurred as under-recovery by the corporation went up to N71.8 billion in the month of September before dropping down to N51.18 billion and N65.86 billion in the months of October and November respectively.
The report stated that the amount incurred by the NNPC as under-recovery was deducted from the Federation Account thus: January N45.78 billion, February N59.51 billion, March N34.03 billion, April N77.9 billion and May N88.9 billion. In June, the corporation deducted about N68.6 billion while July, August, September, October and November recorded deductions of N52.5 billion, N60.6 billion, N71.56 billion, N51.18 billion and N65.86 billion respectively.
Source:New Telegraph
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