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NNPC contribution to federation account drops by N13 billion

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Factual Pursuit of Truth for Progress

Grace Cofie

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The contribution of the Nigeria National Petroleum Corporation (NNPC) to the federation account dropped by N13 billion in September.

This was seen in a document detailing the corporation’s monthly presentation to the Federation Account Allocation Committee (FAAC).

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It is the second most impactful development since the national oil company failed to contribute any funds in April when it started making deductions owing to its funding of subsidy on the pump price of petrol.

According to the data, since May 2021, the NNPC’s funding of the Federation Account had increased steadily from N36.608 billion to N47.1 billion between May and June, and from N67.2 billion to N80.030 billion in August.

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However, the amount dropped to N67.533 billion, with a difference of about N13 billion.

The document also showed NNPC’s performance this year in terms of its statustory funding of the Federation Account, having just been able to pay N496.8 billion, leaving a huge deficit of N1.386 trillion as at September this year.

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Nigeria’s earning on oil and gas sales dropped by N87.41 billion between July and August this year, the summary indicated that the total oil and gas sales in July was N271.215 billion but dropped to N183.81 billion in August which represented a decrease of 32.23 per cent.

With the implementation of the Petroleum Industry Act (PIA) beginning soon, the Federal Government has continued its hesitation to stop payment of subsidy on petrol.

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According to analysts, it will be double jeopardy for sub-nationals which would also be hugely affected by the deduction of the controversial 30 per cent frontier exploration fund.

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