NNPC reports zero remittance in May over N111billion shortfall in oil revenue

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… Says landing cost of PMS now Nl84 per litre

The Nigerian National Petroleum Corporation, NNPC will not be remitting a dime into the Federation Account in the month of May due to a short fall of over N111billion revenue it recorded in February 2021.

The zero remittance from the NNPC implies that the government at all levels will be receiving far less from the pool, less to expend for the month, and of course, creating more hardship for Nigerians.

In a memo to the Accountant General of the Federation, NNPC’s Chief Financial Officer, Umar Ajlya Isa noted that the average landing cost of Premium Motor Spirit (PMS) for the month of March 2021 was Nl84 per litre as against the subsisting ex-coastal price of Nl28 per litre, which he said has remained constant notwithstanding the changes in the macroeconomics variables affecting petroleum products pricing.

According to him, the zero remittance, is to ensure the continuous supply of Petroleum Products to the nation and guarantee energy security.

The text of the memo which is titled, RE; IMPACT OF HIKE IN CRUDE OIL PRICES ON THE DEREGULATED

DOWNSTREAM SECTOR: PROJECTED REMITTANCE TO THE FEDERATION

ACCOUNT FOR APRIL TO JUNE 2021 is reproduced below.

“Further to our previous correspondences on the above subject, we wish to advise on the projected remittance to the Federation Account for the months of April (May FAAC) to June, 2021 (July, 2021 FAAC).

“The Accountant General of the Federation is kindly invited to note that the average landing cost of Premium Motor Spirit (PMS) for the month of March 2021 was Nl84 per litre as against the subsisting ex-coastal price of Nl28 per litre, which has remained constant notwithstanding the changes in the macroeconomics variables affecting petroleum products pricing.

“As the discussions between Government and the Labour are yet to be concluded, NNPC recorded a value short fall 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.

“Accordingly, the AGF is invited to note that the sum of N111,966,456,903.74

will be deducted from April 2021 Oil and Gas Proceeds due to the

Federation in May 2021, which will translate to zero remittance to the

Federation Account from NNPC in the month of May 2021.

“This is to ensure the continuous supply of Petroleum Products to the nation and guarantee energy security.

“Please accept the assurances of my highest regards.”