The Nigerian National Petroleum Corporation (NNPC) says it has swapped its remittance to the Federation Accounts Allocation Committee (FAAC) for the month of April 2021 into petrol payments subsidy.
The Corporation in a letter to Accountant-General Federation, the NNPC blamed the development to a a shortfall of N111,966,456,903.74 it recorded in February as a result of the landing cost of Premium Motor Spirit (PMS) which was N184 per litre as against the subsisting ex-coastal price of N128 per litre.
The corporation explained that the shortfall is traced to an inconclusive discussion on the hike in fuel price between the Federal Government and the labour unions.
According to the letter stated that NNPC will now be deducted from April 2021 Oil and Gas Proceeds, so as to ensure a continuous supply of petroleum products.
“Further to our previous correspondences on the above subject, we wish to advise on the projected remittance to the Federation Account for the months of April (May FAAC) to June 2021 (July 2021 FAAC),” NNPC said its letter seen by Peoples Gazette.
“The Accountant-General of the Federation is kindly invited to note that the average landing cost of Premium Motor Spirit (PMS) for the month of March 2021 was N184 per litre as against the subsisting ex-coastal price of N128 per litre, which has remained constant notwithstanding the changes in the macroeconomics variables affecting petroleum products pricing.
“As the discussions between Government and the Labour are yet to be concluded, NNPC recorded a value shortfall of N111,966,456,903.74 in February 2021 as a result of the difference highlighted above. Accordingly, a projection of remittance to the Federation for the next three months is presented in the attached schedule.
“Accordingly, the AGF is invited to note that the sum of N111,966,456,903.74 will be deducted from April 2021 Oil and Gas Proceeds due to the Federation in May 2021, which will translate to zero remittance to the Federation Account from NNPC in the month of May 2021″.