Subsidy: NNPC May Deduct Over ₦1 Trilion From FAAC In Six Months by Loveurneighbour

Figures obtained from the oil firm on its subsidy deductions in 2021 indicated that the amount deducted monthly from FAAC by the NNPC was higher during the periods of higher crude oil prices.

This was also confirmed by economists, who explained that the higher the international price of crude oil, the higher the amount to be deducted by the NNPC from FAAC.

They also stated that the volume of petrol consumed in a particular month was contributory to the amount being spent as subsidy, but insisted that the major factor was the global crude oil price.

As the sole importer of PMS and supplier of last resort, the NNPC ensures adequate supply of refined petroleum products by importing the commodities.

PMS is not deregulated by the Federal Government, as the price is sold at between N162 and N165/litre at filling stations, far lower than the actual cost of the commodity.

In June 2021, the Group Managing Director, NNPC, Mele Kyari, had stated that petrol price should be more than N280/litre, while the commodity had been subsidised and sold at N162/litre since last year.

The subsidy spent on each litre of petrol consumed in Nigeria is therefore recovered by NNPC through its monthly deductions from its remittances to FAAC.

An analysis of the monthly FAAC deductions in 2021, captured by the NNPC as under-recovery of PMS/value shortfall, for instance, showed that the oil company deducted N25.37bn from FAAC in February 2021 when the average price of Brent crude was $62.28/barrel.

But in June of the same year when the price of Brent climbed to $73.16, the national oil firm reported that it spent N164.33bn on subsidy in that month.

Notably, between June and November 2021, a period of six months, the oil firm deducted N888.13bn from FAAC being subsidy spent on petrol imports. This comes to about N148bn monthly on the average.

The average cost of Brent crude during the six-month period, according to figures obtained from Statistica, a global statistical firm, was put at $76.4/barrel.

However, the price of Brent has been on the rise since this year, following efforts by the Organisation of Petroleum Exporting Countries and its partners to boost the cost of the commodity.

Comments

Post a Comment

Popular posts from this blog

Can Your Bank Account Be Hacked With Your BVN Number?

 According to my research on this post, I will give an answer to the question – Can Your Bank Account Be Hacked With Your BVN Number? There are thousands of hackers out there, they are everywhere online. That’s why I used to say, know the type of person you trust online and the type of person you have business with. I will teach how to protect your account details for you not to get hacked. Some people are suffering out there, just because hackers as ruined their life. Don’t trust anyone online, even some people you know can still hack you. There is nothing like magic in this system of hacking someone. Hackers can’t hack like magic, they will figure out some confidential information about you. Actually, they get them mostly on Social media. And some sites like dating sites and many more. I don’t know anything about hacking, but based on my research. I’m writing this post for my readers to stay safe online. What’s BVN? The abbreviation BVN stands for Bank Verification Number. It is used
Read more

ASUU Ready For Total Shutdown Of Universities by MasterGift

The Academic Staff Union of Universities has again indicated that if the federal government does not implement its Memorandum of Action, MoA, by January ending, they will likely shut down universities. Speaking with Vanguarde in an interview, the Union’s president, Prof. Emmanuel Osodeke, said the union was waiting for the period of grace given to lapse before taking the necessary steps. As a responsible union, we are consulting widely on the issues at stake. We have an MoA that is yet to be implemented fully and we also have the renegotiation of the 2007 Agreement pending. A lot of groups and concerned individuals have stepped in to intervene in the matter. We are responsible unionists and citizens and we must give room to those interventions; may be they can help persuade the government to do the needful. We have given them up till the end of this January and if nothing is forthcoming, we can take the next step,” he said. It was gathered that if the union’s demands are not met, natio
Read more

After Declaring Interest In Presidency, Tinubu Travels Out For Medical Treatment by saharareporters

Barely Three Weeks After Declaring Interest In 2023 Presidency, Tinubu Travels Out for Medicals Tinubu left the country after admitting to having a stressful time touring states for his "lifelong presidential ambition". National Leader of the All Progressives Congress, Bola Tinubu, has again jetted out of Nigeria to seek medical attention abroad, SaharaReporters has learnt. This comes barely three weeks after he informed President Muhammadu Buhari of his ambition to contest the position of president in 2023. Tinubu also paid visits to some Northern states including Niger and Katsina to sell his ambition. He also recently met with former Head of State and annuller of the June 12, 1993, presidential election, General Ibrahim Babangida, over his plans to be President of Nigeria. According to sources, Tinubu left the country after admitting to having a stressful time touring states for his "lifelong presidential ambition". His destination was, however, not disclosed. He
Read more