By YANGE IKYAA
The N200 billion planned deduction by the Nigerian National Petroleum Company (NNPC) for petrol subsidy later this month will exceed the amount deducted last month by N36.29 billion.
While September’s deduction stood at N149.28 billion, the figure for October was N163.709 billion, some N36.29 billion less than the N200 billion projected deduction for the month of November, which will be effected later in December.
A breakdown by ThisDay of the various deductions indicated that payments have increased progressively, growing from N24.3 billion in February to N60.3 billion in March and N61.9 billion in April this year.
Furthermore, in May, the NNPC removed N126 billion as a subsidy, while June came next with N164.3 billion.
In July, the document stated that N103.2 billion was spent on what the government terms under-recovery, while August had the year’s lion’s share of N173.1 billion.
However, the overall crude oil lifting by the newly rechristened company almost doubled in September, according to the national oil company during the presentation which held on the 17th of November.
In addition, the presentation signed by Bello Abdullahi, on behalf of the Chief Financial Officer, Umar Ajiya, noted that for October, the NNPC spent over N7.7 billion on its strategic holdings and fixing of its pipelines.
Besides, the NNPC stated that product losses amounted to N143.3 billion, stressing that the “value shortfall” of nearly N200 billion would be subtracted later this month when the FAAC meeting holds.
Part of the presentation obtained by THISDAY read: “The overall NNPC crude oil lifting of 11.49 Mbbls (export and domestic crude) in September 2021 recorded 98.5 per cent increase relative to the 5.79 Mbbls lifted in August 2021.
“Domestic gas and other receipts in the month was N6.78 billion. The domestic gas in the month was N4.07 billion. Feedstock valued at $59.43 million was sold to Nigeria LNG during the period out of which $52.57 million was received during the month.
On domestic crude and gas sales, it added: “The sum of N252,968,629,898.13 was the gross domestic crude oil and gas revenue for October 2021.
“The recoveries were: strategic holding cost and pipeline repairs amounting to N7,757,631,778.84, product losses worth N143,386,571.87, and value shortfall of N163,709,314,928.61. This comprised of the N123,709,314,928.61 for September 2021 and N40,000,000,000.00 value shortfall deferred in June 2021.”
For November operations revenues which are due for sharing in November, the NNPC indicated that almost N200 billion will be netted off or removed as it had done in the previous months.
“The October 2021 value shortfall of N199,007,758,422.75 is to be recovered from the November 2021 proceeds due for sharing at the December 2021 FAAC meeting,” it emphasised.
On its other receipts, the national oil company noted that the sum of $95.63 million being miscellaneous receipts, gas and ullage fees as well as interest income was received in October 2021.
Compared to the previous month, the overall NNPC crude oil lifting was 5.79Mbbls in August 2021, a record of 33.5 per cent decrease relative to the 8.71Mbbls lifted in July 2021.
The NNPC said that Nigeria recorded 1.417 barrels per day million production in September 2021, just like it did in August 2021, adding that while crude oil export revenue received in September 2021 amounted to $8.38 million equivalent of N3.22 billion, for October “there was no crude export revenue”.
In June, the NNPC told the nation that Nigeria was losing about 42 million litres of petrol to the activities of smugglers across the country’s borders, increasing Nigeria’s estimated daily consumption of 60 million litres to 103 million litres, thereby worsening the subsidy payment regime.