Salary cut imminent
The Nigerian National Petroleum Corporation Ltd. (NNPC), has announced that it has no money to share to Federal, States and local governments.
Providing a breakdown of its finances, the NNPC revealed that it made N1.89 trillion in five months but however said that most of the money has been spent.
On Monday, the NNPC revealed that it failed to remit monies to the federation account in May 2022 despite making N470.61 billion.
This is the fifth straight month the oil firm has failed to add a kobo to the Federal Account, while announcing a whopping N1.89 trillion revenue, which is N238.137 billion more than earlier projected revenue.
Who Stole Robert Pattinson’s Heart? | Rumour Juice NNPC deficit payment to the Federation Account is now a whopping N704 billion, which is giving serious headache to States.
Details of NNPC’s Federation Account Allocation Committee (FAAC) June report, revealed that most of the revenue received by the corporation from crude oil sales has been ploughed back to funding the petrol subsidy, oil search, pipeline security & maintenance costs, National Domestic Gas Development and Nigeria Morocco Pipeline cost, among others.
The development has caused the World Bank, in its latest ‘Nigeria Development Update Report’, to express concern that Nigeria could be heading for a massive fiscal crisis due to continue subsidy payments
As earlier noted, NNPC made N1.89 trillion in revenue but spent N1.27 trillion, went on petrol subsidy.
NNPC has informed FAAC that it would deduct N845 billion from June proceeds due for sharing at the July FAAC meeting, ThisDay reports. Snapshot of NNPC 5-month finance Credit: NNPC Source: Facebook Breakdown of NNPC subsidy payment in 2022 According to the NNPC presentation to the Federal Accounts Allocation Committee (FAAC) it paid N327.06 billion as subsidy in May, representing a 20.4% increase from the previous month and the highest on record this year.
A further breakdown of the subsidy spending shows that the oil firm paid N210.38 billion, N219.78 billion, N245.77 billion, and N271.59 billion as subsidies on petrol in January, February, March and April, respectively.
