NNPC made over N1 trillion gross earnings in five months

The Nigerian National Petroleum Corporation (NNPC) between January to May 2021 made a gross earning of N1,088,088,390,455 from the sales of petroleum products.

This is before deductions such as JV cost recovery, strategic holding cost, pipeline management cost, pipeline operations, repair and maintenance cost, statutory dues among others are made.

Despite making this huge amount within the space of five months, industry data revealed that over a N404billion of the gross revenue was lost to product losses, pipeline repairs and maintenance and subsidy.

A breakdown showed that within the period under review, the NNPC lost a whooping sum of N388.4billion to “value shortfall”, while product losses, Pipeline repairs and maintenance gulped N5.3billion and N10.5billion respectively.

A further breakdown revealed that the Corporation’s shortfall was highest in April with N126billion which represented over 80percent of its N156billion revenue.

Also in the month of May, the shortfall was N114.3bn, which is 35.6percent of its N320billion gross revenue within the month.

Both months recorded the highest shortfall followed by March, February with N62bn and N60.4billion respectively, while January had the least of N25.4billion.

For product losses, the value of the loss was highest in March and put at N1.64billion while for February, the value was N1.62billion.

In April and May, the cost of product loss was N961million and N1.1billion respectively.

However, there was no record of loss in January.

This implies that about 37.1 per cent of the Corporation’s gross revenue within the months, which could have been a contribution to the Federation Account Allocation Committee (FAAC) was lost to the mentioned factors.

Meanwhile, the Corporation in its April 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR), announced a trading surplus of N43.57bn in April 2021 representing a 23.64% increase over the N35.24bn surplus it recorded in March 2021.

However, it stated that expenditure for the month increased by 17.24 per cent or N72.34bn to stand at N492.05bn.

It attributed the rise in trading surplus to the activities of the Corporation’s Upstream subsidiary, the Nigerian Petroleum Development Company (NPDC), such as crude oil lifting from OML 119 (Okono Okpoho) and OMLs 60, 61, 62, 63 (Nigerian Agip Oil Company), as well as an increase in gas sales.

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