Oil theft, subsidy, others rips Nigeria N38bn in one month

The Nigerian National Petroleum Corporation, NNPC, Tuesday, disclosed that a total of N38.26 billion was lost in one month to fuel subsidy, products theft and pipeline repairs.

The corporation also stated that it spent N4.987 billion on pipeline repairs and management cost.

According to the NNPC, Monthly Financial and Operations Report for November 2019, losses to subsidy, petroleum products theft and pipeline repairs, surge by 9.85 per cent in November 2019, from N34.83 billion lost in the month of October 2019

The amount lost represented 47.4 per cent of the N80.72 billion remitted NNPC to the Federation Account Allocation Committee, FAAC from the domestic sale of crude  oil and gas.

Gas supply: NNPC records 16% increase in November

A breakdown of the development shows the corporation incurred N33.19 billion as under-recovery, also known as subsidy for Premium Motor Spirit, PMS, (petrol) while N88.97 million was lost through oil products thefts.

In the preceding month under review, subsidy gulped a total of N29.31 billion, N659.47 million worth of petroleum products were stolen, while pipeline repairs and management cost the country N4.86 billion.

On the other hand, the country earned N173.8 billion and N5.78 billion from the domestic sale of crude oil and gas respectively in November 2019; while total remittances stood at N217.84 billion.

From total remittance, the NNPC said it expended N98.86 billion for Joint Venture cost recovery, while it transferred N80.72 billion to FAAC in the period under review.

The NNPC said, “In November 2019, NNPC remitted the sum of N179.58 Billion to the Federation Account Allocation Committee (FAAC). From November 2018 to November 2019, total NNPC remittances to FAAC is N1.587 trillion; out of which Federation and JV received the sum of N747.69 billion and N838.87 billion respectively.”

IBRANDTV

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