Lagos — After spending N101.65 billion as subsidy on Premium Motor Spirit (PMS), also known as petrol, in the first three months of 2020, the Nigerian National Petroleum Corporation (NNPC) recorded zero subsidy figures for April 2020.
According to NNPC Monthly Financial and Operations Report for April 2020, as a result of the elimination of fuel subsidy, the corporation’s remittance to the Federation Account in April rose by 39.56 per cent to N96.56 billion from N69.19 billion remitted to the federation in March 2020.
The report noted that the NNPC had spent N43.31 billion as subsidy in January; N20.68 billion in February and N37.66 billion in March 2020, while the figure dropped to zero in April 2020.
The disappearance of subsidy was mainly as a result of the declining price of crude oil in the international market, which also forced down the price of petroleum products.
Specifically, the NNPC, in the report, stated that In April 2020, the average crude oil price decreased by $13.09 or 41.58 per cent, month-on-month (m-o-m), to $18.40 per barrel.
According to the corporation, the OPEC Reference Basket (ORB) plummeted by $16.26, or 48.0 per cent, m-o-m, to $17.66 per barrel, the lowest monthly level since December 2001.
Quoting the OPEC Monthly Oil Market Report (MOMR), the NNPC stated that crude oil prices recorded a second consecutively sharp monthly drop in 2020, reflecting the waves of COVID-19 pandemic on the global economy as well as increasing oil surplus in the spot market.
In turn, it said ICE Brent declined by $7.10, or 21 per cent, to average $26.63 per barrel, while NYMEX WTI fell by $13.75, or 45.2 per cent, to average $16.70 per barrel to reflect the market sentiments.
In addition, the NNPC stated that in March 2020, total crude oil production in Nigeria increased by 3.17 million barrels (mb) or 5.28 per cent at 63.19 mb with daily average of 2.04 million barrels per day.
It noted that production was disrupted by shutdown of the Trans Forcados Pipeline (TFP) at Forcados for repairs, while Bonny Nembe Creek Trunk Line (NCTL) was shut down due to leaks on the right of way (ROW) near Boro/Awoba axis.
It added that production was also interrupted at Bonga, Egina, Brass, Erha, Usan, Amenam, Ogo Ocha and Ima terminals due to lube oil loss, pump issues, loss of power, riser protector replacement, pipeline repairs and flare management.