NNPC Transfers $5.8bn to FAAC in One Year

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Chineme Okafor in Abuja

The Nigerian National Petroleum Corporation (NNPC) has paid a total of $5.88 billion to the Federation Account and Joint Venture partners from the revenue made from oil production and sales between July 2018 and July 2019, its monthly operations report has disclosed.

The corporation also incurred a total of N739,356, 719,162 as under-recovery or subsidy on consumption of imported petrol in the country within the period.

The report for the month of July obtained yesterday from the corporation’s webpage explained that from year-to-date, the corporation paid to the federation account a total of $1.47 billion out of the $5.88 billion earned over the period, while the balance of $4.41 billion was transferred to joint venture cash call account to fund production of oil and gas.

It equally explained that out of the money earned from the sale of domestic crude oil allocations, it paid into the federation account N729.31 billion, and N602.30 billion to joint venture account within the period as well.

“A total export receipt of $390.33 million was recorded in July 2019 as against $312.93 million in June 2019. Contribution from crude oil amounted to $250.35 million while gas and miscellaneous receipts stood at $76.28 million and $63.71 million respectively.

“Of the export receipts, $93.26 million was remitted to the federation account while $297.07 million was remitted to fund the JV cost recovery for the month of July 2019 to guarantee current and future production.

“Total export crude oil and gas receipt for the period of July 2018 to July 2019 stood at $5.88 billion, out of which the sum of $4.41 billion was transferred to JV cash call as first line charge, and the balance of $1.47 billion was paid into the federation account,” the corporation’s monthly report said.

With regards to the remittance from domestic crude oil sales, the report stated that: “In July 2019, NNPC remitted the sum of N27.23 billion to the Federation Accounts Allocation Committee (FAAC). From July 2018 to July 2019, the federation and JV received the sum of N729.31 billion and N602.30 billion respectively.”

Turning to under recovery on petrol consumption, it added that while it incurred a total of N739,356,719,162 for that within the period, it equally lost N3,501,781,793 to crude oil losses or theft; N36,511,745,019 to product losses, and expended N163,749,468,783 on pipeline repairs and maintenance.

Compared to its remittances within the same period in 2018-between July 2017 and July 2018-the corporation showed that it recorded an upward remittance figure. According to it, between July 2017 and July 2018, it earned $5,206,619,661 out of which $3,797,269,045 was transferred to the joint venture cash call account, while $1,409,350,616 was transferred to the federation account.

Similarly, within the same period of July 2017 and July 2018, it incurred a lower figure of N492,287,916,106 on subsidy and then lost N5,857,507,717 to crude oil theft; N10,276,382,696 to product losses, while it spent N131,070,457,991 on pipeline repairs and maintenance.