Lagos — The Nigerian National Petroleum Corporation (NNPC) said it spent N210.382 billion on under recovery of Premium Motor Spirit (PMS), another name for fuel subsidy, in January 2022.
The NNPC, in its February 2022 presentation to the Federation Account Allocation Committee, stated that the amount spent to subsidise PMS in January represented a 22.32 per cent decline from the N270.831 billion subsidy payment recorded in December 2021.
In addition, the NNPC reported that it also spent N9.11 billion on refinery rehabilitation in the month under review, a 9.34 per cent rise from the N8.33 billion expended on the same project in December 2021.
Other major spendings of the NNPC in the month under review, according to the report include pipeline security and maintenance cost N1.056 billion; frontier exploration services, focusing on crude oil search in northern Nigeria, N3.884 billion; and pre-export financing N5.833 billion.
In addition, the NNPC said it spent N2.28 billion on the National Domestic Gas Development; N2.528 billion on gas infrastructure development projects; N752 million was expended on the Nigerian-Morocco gas pipeline project; and N448 million on crude oil pre-inspection agency expenses.
The NNPC added that crude oil lifting, both domestic and export crude in December 2021 stood at 8.13 million barrels in January 2022, dropping by 2.21 per cent from 8.31 million barrels recorded in November 2021.
The corporation further stated that the country recorded average crude oil of 1.31 million barrels per day in December 2021; crude oil export revenue of $2.23 million in January; Nigeria Liquefied Natural Gas (NLNG) feedstock gas receipt of $68.53 million in January 2022; and other receipts of N254.73 million.
Explaining the expenditure on fuel subsidy, the NNPC said: “The December 2021 value shortfall recovery on the importation of PMS amounted to N210.38 billion. The recovery consists of December 2021 value shortfall N176.48 billion plus the outstanding value shortfall recovery of N33.902 billion accrued over 2021.The November 2021 spot arrears of N98.81 billion is also outstanding.”
In addition, the NNPC stated that: The estimated value shortfall of N242.53 billion (consisting of N143.72 billion for January 2022 recovery plus November spot arrears of N98.81 billion) is to be recovered from the February 2022 proceed due for sharing at the March 2022 FAAC meeting.”
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