The Nigerian National Petroleum Corporation (NNPC) between 2019 and 2020 May, remitted over N1.8trillion (N1,834,134,800,928) into the Federation Account Allocation Committee (FAAC) as proceeds from the sale of domestic crude Oil and Gas.
In May 2020, the total sales proceeds into the account were N161.89billion (N161,888,890,685), compared to the over N219 billion (N219,159,156,768) remitted in April, bringing the total decrease to about N57.3billion (N57,270,266,083).
The NNPC’s Monthly Financial and Operations Report May 2020 obtained by the Tribune Online, shows that out of the total remittances in one year, the Federation and Joint Ventures(JV) with Government Priority Projects received the sum of N857.39billion and N976.75billion respectively.
In a breakdown of the sums, between 2019-2020 May, the total domestic sales proceeds due was an approximated N2.4trillion (N2,368,873,581,558) while the domestic crude proceeds receipts within the period were N1.7trillion (N1,728,042,817,764).
ALSO READ: Insecurity: Buhari meets with northeast governors, security chiefs
For gas, the proceeds receipt in the period under review was N65.4billion (N65,380,576,041), while other receipts accounted for N40.7billion (N40,711,407,123).
It further shows that for May 2020, the total domestic sales proceeds due was N156.5billion (N156,480,132,185), domestic crude proceeds, gas proceeds and other receipts are; N146.9billion, N214million and N14.7billion all respectively.
The report further indicated that the highest domestic crude oil remittance was recorded in April 2020 with N213.0billion but had the smallest gas payment of N116.7million.
However, the remittances are for different lifting months. For instance, the payment made for May 2020, was for February same year, while the remittance for April was for January 2020.
According to the monthly report, Federation Crude Oil and Gas lifting which is classified into Equity Export and Domestic, are lifted and marketed by NNPC, while the proceeds are remitted into the Federation Account.
The Equity Export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into the Federation Account domiciled in the Central Bank of Nigeria (CBN).
“Domestic Crude Oil of 445,000bpd is allocated for refining to meet domestic products supply. Payments are effected to Federation Account by NNPC after adjusting crude and product losses and pipeline repairs and management cost incurred during the period.
“NNPC also lifts Crude Oil and Gas other than Equity and Domestic Crude Oil on behalf of DPR and FIRS proceeds of which are remitted into Federation Account.
“The Third-Party finance lifting is Crude Oil and Gas lifting from fields that are financed using alternative finance/loan facility which require the servicing of debt obligations before remitting the balance into the Federation Account as Price Balance as shown,” it stated.
and then