BANYO TEMITAYO
THE Nigerian National Petroleum Corporation has said there will be zero remittance to the Federal Account Allocation Committee as revenue for the month of May, owing to projected cost of subsidy.
It said net revenue to FAAC was projected at N171.747 billion, while subsidy was projected to cost N171.746 billion, leaving zero remittance as the net revenue to FAAC.
This was disclosed in the supporting document of a letter to the Accountant General of the Federation, by the Chief Financial Officer, NNPC, Umar Isa.
According to NNPC, in January, February and March, net revenue to FAAC, after value loss, stood at N96.86billion, N64.16billion and N41.184 billion respectively.
It said the average landing costs for Premium Motor Spirit for the month of March 2021 was N184 per litre against the subsisting ex-coastal price of N128 per litre.
This, the Corporation said, had remained constant notwithstanding the changes in the macroeconomic variables affecting petroleum products pricing.
The NNPC had earlier raised the alarm that it was paying N120 billion monthly to subsidise petrol, with no provision for subsidy in the 2021 Budget.
Recall that the Minister of State for Petroleum Resources, Timipre Sylva, had warned, in February, that the Corporation could no longer bear the rising cost of petrol subsidy.
He had advised Nigerians to be ready to bear the pains of increased petrol pump price as crude oil price rose above $60 per barrel.
The NNPC’s letter read in part, “The Accountant General of the Federation is kindly invited to note that the average landing costs for Premium Motor Spirit for the month of March 2021 was N184 per litre against the subsisting ex-coastal price of N128 per litre, which has remained constant notwithstanding the changes in the macroeconomic variables affecting petroleum products pricing.
“As the discussions between Government and the Labour are yet to be concluded, NNPC recorded a value shortfall of N111.966,456,903.74 in February 2021 as a result of the difference highlighted above.
“Accordingly, a projection of remittance to the federation for the next three months is presented in the attached schedule.”
