The Nigerian National Petroleum Company Ltd. (NNPCL), says it deducted N152.85 billion as a shortfall for the importation of petrol (subsidy) in November 2022.
The national oil company stated this in its monthly presentation to the Federation Account Allocation Committee (FAAC) meeting on Wednesday.
Subsidy, or under-recovery, is the underpriced sales of premium motor spirit (PMS), otherwise known as petrol.
According to the FAAC document, due to deductions for subsidy payment, the oil company had zero contribution to the federation revenue account in the month under review.
In January, February, and March 2022, petrol subsidy payments gulped N210.38 billion, N219.78 bn, and N245.77 bn, respectively. In April, May, and June, the country spent N271 bn, N327.07 bn, and N319.18 bn, respectively.
Also in July, August and September, and October, subsidy gulped N448.782 billion, N525.714 bn, N341.937 bn, and N239.411 bn, respectively.
With a plan by the federal government to spend N4 trillion on subsidies in 2022, the NNPC has so far spent a total of N3.302 trillion on petrol subsidies in 11 months.
Experts have consistently pointed out that subsidy payment is one of Nigerias biggest challenges, as it continues to deny the country of profits from its oil sector.
In August last year, the Federal Government said it would stop the spending in June 2023. However, it plans to spend N3.35 trillion on petrol subsidies, as contained in the 2023-2035 Medium-Term Expenditure Framework and Fiscal Strategy Paper, (MTEF & FSP).
