FAAC got over N872bn from NNPC in 11 months

*NNPC Towers.

*NNPC Towers.

*Records over N240bn year-to-date revenue deficit

01 January 2016, Abuja — The Nigerian National Petroleum Corporation, NNPC, has disclosed in its November 2016 monthly operational and financial report that it has so far paid to the Federation Accounts and Allocation Committee, FAAC, a total of N872.90billion from January to October 2015 as revenue from domestic crude oil and gas sales.

The corporation also said a total of $607.8 million has been paid so far to the FAAC in the year 2015 from sales of export oil and gas.
It added in the monthly report which was released yesterday that the total export crude oil and gas receipt for the period of January to November 2015 was $4.14 billion, out of which the total receipts of $0.61 billion was remitted to FAAC while the balance of $3.53 billion was used to fund Joint Venture (JV) Cash Calls for the period.

NNPC also noted that it recorded a deficit of N240.99 billion for the period, adding that 58.19 per cent of the year-to-date, YTD, losses was accounted for by claimable pipeline repairs and management cost of N86.69 billion, as well as crude and product losses of N53.55 billion due to vandalized pipelines.

According to the report, federation crude oil and gas lifting are broadly classified into equity export crude and domestic crude. Both categories are lifted and marketed by the NNPC and the proceeds remitted to the Federation Account.

Also, monthly export receipts are paid directly into a JP Morgan account operated by the Central Bank of Nigeria (CBN), and after adjusting for calenderised JV Cash Calls, being a first line charge as provided in the appropriation bill, the balance is transferred to the Federation Account.

Equally, domestic crude oil of 445,000 barrels per day allocated for refining to meet domestic products supply. This volume is utilised through various arrangements such as domestic refining; offshore refining; crude for product exchange and direct export. The net proceeds after adjusting for fuel subsidy; crude and product losses and pipeline repairs and management cost are remitted to the Federation Account.

NNPC said on naira payments to government that: “The sum of N933.1 billion for domestic crude oil and gas and other receipts have been paid to the Federation Account from January to November 2015.”

It further stated that the country’s refineries operated at zero capacity utilisation in the month of November.
The country’s refineries include Warri Refining and Petrochemical Company, Port Harcourt Refining Company and Kaduna Refining and Petrochemical Company.

A summary of the operational report said: “Group operating revenue after subsidy for the months of October and November 2015 were N173.56 billion and N155.10 billion respectively.

“This represents 56.72 per cent and 50.68 per cent respectively of monthly budget. Similarly, operating expenditure for the same periods were N185.78 billion and N169.39 billion respectively, which also represents 69.55 per cent and 63.42 per cent respectively of budget for the months.”

“Operating deficits of N12.22 billion and N14.29 billion for October and November 2015 respectively was attained as against monthly budgeted surplus of N38.91billion. The 59.63 per cent of YTD (year-to-date) NNPC deficit of N255.278billion is mainly accounted for by claimable pipeline repairs/management cost of N95.37 billion and crude and product losses of N56.68 billion due to vandalised pipelines.”

The NNPC said total export proceeds of $402.55 million was recorded within the period with proceeds from crude oil export sales amounting to $296.99 million or 73.78 per cent of the dollar payment compared with 72.97 per cent contribution in previous month of October, 2015.

It stated that gas export sales and Nigeria Liquefied and Natural Gas feedstock amounted to $105.53 million, which was 26.22 per cent contribution compared with 18.97 per cent contribution in the prior month of October 2015.

“The remaining $0.03 million was attributable to other dollar denominated receipts by the corporation and a total of $607.8 million has been paid so far to FAAC in the year 2015 from sales of export oil and gas,” it said.
*Chineme Okafor – Thisday

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