Business Headline News Nigeria Oil&Gas

94.7% of August oil, gas revenue spent on fuel subsidy

The latest data from the Nigerian National Petroleum Company Limited affirmed the company spent 94.77 percent of its revenue on fuel subsidy payment in August.

Information from the national oil company’s monthly presentation to the Federation Account Allocation Committee (FAAC) meeting at the weekend showed that NNPCL generated N553.99 billion in revenue from oil and gas operations in August 2022.

According to a THISDAY review, the subsidy payment or what the firm terms under-recovery, which was deducted for the month, was N525.71 billion.

However, the revenue made by the national oil company was mainly from Joint Ventures (JVs) and Production Sharing Contract (PSC) arrangements.

Asides oil and gas proceedings, other transactions, termed miscellaneous, fetched the company N11.82 billion under JV and PSC. 

The fund now paid for the controversial subsidy, was remitted into the federation account, comprising the federal, state and local governments.

On Sunday, it was reported that NNPCL continued its zero funding for the federation account in August, extending the national oil company’s prolonged non-remittance to the joint account to eight months.

In August, Nigeria produced its least crude oil in decades, just about 972, 000 barrels per day, further worsening the country’s foreign exchange supply crisis.

Writing by Tersoo Nicholas, Editing by Omotola Oguneye