Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » NNPC spent N307bn on subsidy in 2015

    NNPC spent N307bn on subsidy in 2015

    February 16, 2016
    Share
    Facebook Twitter LinkedIn WhatsApp

    16 February 2016, Abuja — The Nigerian National Petroleum Corporation, NNPC, spent about N306.92 billion on subsidy between January and December 2015. A motorist refueling his car at a black market

    NNPC-Towers-Abuja
    NNPC Towers, Abuja

    According to the NNPC’s Monthly Financial and Operations Report for December 2015, the subsidy experienced a dip in the amount transferred to the Federation Account, which dropped to N1.02 trillion.

    In a six month period from January to June, the NNPC spent N15.35 billion, N11.175 billion, N31.06 billion, N30.01 billion, N53.05 billion, N18.928 billion, respectively on subsidy, while from July to December 2015, it spent N35.95 billion, N35.51 billion, N18.11 billion, N27.66 billion, N16.5 billion and N13.62 billion respectively.

    In addition to the amount spent on subsidy, the NNPC recorded crude oil losses of N8.399 billion; product losses of N51.314 billion and spent N103.5 billion for pipeline repairs and management cost.

    Furthermore, the NNPC repaid N75.965 billion from its N450 billion indebtedness to the Federation Account.

    Specifically, the Corporation paid N6.33 billion monthly, from January to December 2015, to the Federation Account.

    As a result, NNPC’s total payments from its domestic sales proceeds to the Federation Account in 2015 stood at N1.095 trillion.

    On a month-by-month basis, the NNPC remitted N137.79 billion, N84.5 billion, N103.56 billion, N90.09 billion, N102.99 billion and N101.96 billion for January to June respectively.

    From July to December, it remitted N77.4 billion, N76.18 billion, N73.26 billion, N88.48 billion, N66.526 and N92.67 billion respectively.

    Giving a breakdown of domestic sales proceed, the NNPC earned N987.54 billion from the sale of crude oil; N28.26 billion from sale of gas while other receipts stood at N3.625 billion.

    However, the Corporation’s exports were significantly lower than its domestic sales, as it earned $4.74 billion, about N948 billion from the export of crude oil and gas in 2015. It utilised $4.13 billion, about N826 billion for Joint Venture cash call funding, and remitted only $607.827 million, about N121.6 billion to the Federation Account.

    Of the total export sales proceeds, the NNPC earned $3.16 billion from the sale of crude oil; $1.296 billion from the gas sales, and $282.773 million from other receipts. The report stated that total export proceeds of $197.15 million were recorded in November, consisting of crude oil receipt of $161.90 million, LPG & EGTL $34.84 million, and miscellaneous receipt of $0.42 million.

    It said: “The current total export receipt dropped by more than 50 per cent following further slide in crude oil prices and additional shut-in of about 35,000 barrels of oil per day (bopd) in Usan and Yoho Terminals. Other factors include none receipt of NLNG Feedstock of about $74.47 million following payment slippage into new year and 57.08 per cent drop in LPG/NGL lifting.

    “Total export crude oil and gas receipt for the period of January – December 2015 is $4.74 billion. Of the total receipts, the sum of $0.61billion was remitted to Federation Account while the balance of $4.13 billion was used to fund the JV Cash Call for the period.

    “Thus JV funding has gulped more than 87 per cent of the proceeds. JV cash call is a first line charge to Federation Account and 2015 approved budget requires monthly funding of about $615.8 million. NNPC is therefore mandated to sweep all the export receipt to JV Cash Call funding implying a zero remittance to Federation Account.”
    – Vanguard

    Related News

    NNPC to list on stock exchange in 2028, says Ojulari

    Oil rises 2% as investors weigh market outlook, tariffs, sanctions

    BP flags gas, oil price hit; higher upstream output in second quarter

    E-book
    Resilience Exhibition

    Latest News

    NNPC to list on stock exchange in 2028, says Ojulari

    July 11, 2025

    Oil rises 2% as investors weigh market outlook, tariffs, sanctions

    July 11, 2025

    BP flags gas, oil price hit; higher upstream output in second quarter

    July 11, 2025

    Gazprom, CNPC discuss future Russian gas supplies to China

    July 11, 2025

    Russia`s Tatneft launches new hydrocracking unit on TANECO refinery, company reports

    July 11, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.