NNPC Fails To Remit Into Federal Account Despite N2.38 trillion Revenue In Six Months

The Nigerian National Petroleum Company (NNPC) Limited has disclosed that it made N2.38 trillion revenue from oil sales, however the corporation didn’t remit any money to the Nigerian government’s account in six months.

According to the Federation Accounts Allocation Committee (FAAC) report published on Tuesday, NNPC Limited spent the N2.38 trillion on several projects such as repair of refineries, National Domestic Gas Development, Pipeline Security & Maintenance cost, cost recovery/cash call.

This left the NNPC Limited with zero naira to remit into the coffers of the Federal accounts, with oil search (Frontier Exploration Services), Gas Infrastructure Development, Pre-Export Financing, Nigeria Morocco Pipeline also gulping part of the revenue.

Other projects NNPC Limited expended the turnover on are Renewable Energy Development (RED), as well as Crude Oil Pre-Export Inspection Agency Expenses (NESS FEES).

Breakdown of the expenses showed fuel subsidy gulped N1.59 trillion of the total gross revenue, after subsidy payments rose to N319 billion in June 2022, from N210 billion in January 2022, while N658.97 billion was expended on cost recovery/cash call tagged T1/T2 for six-month.

The presentation of the oil corporation also showed that N12.42 billion was spent on Pipeline securities, with Oil search gulping N14.32 billion.

NNPC Limited’s failure to remit into the Federal accounts comes at a period other countries are significantly benefiting from the boom in oil price, which traded largely above $100 per barrel.Abu Dhabi National Oil Company (ADNOC), the United Arab Emirates state-owned oil company, saw its revenue rise 13% year-on-year to $1.27 billion in H1 2022, while recording $379 million net profit, which rose 34% year-on-year, with Aramco of Saudi Arabia generating $48.4 billion net income in Q2 this year, surpassing the $25.5 billion grossed during the same period last year.

Speaking on the growth of ADNOC earnings, the Managing Director, Sultan Al Jaber, said, “Excellent half-year results and successful strategic execution are testaments to the vital role that the company is playing in enabling significant production capacity growth for ADNOC as well as the UAE’s objective to achieve gas self-sufficiency.”