The Nigerian National Oil Company (NNPC) Limited deducted an additional N271.13 billion as revenue foregone for importation of gasoline (subsidy) in April 2022.
The subsidy or under-recovery is the dumped sales of premium motor gasoline (PMS), better known as gasoline.
The NNPC has spent N947.53 billion on gasoline subsidies so far this year, more than half of the subsidy expenditure in 2021.
The NNPC said so in its monthly presentation to the Federation Accounts Allocation Committee (FAAC) meeting on Tuesday, April 24.
The FAAC document obtained by TheCable showed that it is the fourth time the oil company will not contribute any funds to the federation’s account in 2022 as subsidy payments continue to deplete revenue.
The NNPC also said it would deduct N371 billion for the revenue shortfall in May 2022 at the FAAC meeting next month.
“The value shortfall on import of PMS recovered from the April 2022 product is N271,125,127,487.58 while the outstanding balance carried forward is N371 billion,” the document states.
“The estimated value shortfall of N874,503,649,663.98 billion (comprising arrears of N371 billion, plus an estimated April 2022 fall in value of N503,313,767,82814 is to be recovered from May 2022 and must be shared in June 2022 FAAC meeting.
In January, February and March 2022, the sunken gasoline subsidy 210.38 billion, 219.78 billion naira and 245.77 billion naira respectively.
Gasoline subsidy payments continued to reduce the federation’s revenue.
This year alone, the federal government has planned to spend 4 trillion naira on expensive oil subsidies – due to high world oil prices due to the Russian-Ukrainian war.
During the month under review, the report states that NNPC lifted a total crude oil volume of 8.80 million barrels (domestic crude export) in March 2022, which represents a 10% decline from the 9 .77 million barrels lifted in February 2022.