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NNPC Says It Had A Revenue Deficit Of N1.29 Trillion This Year

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Mele Kyari NNPC GMD
NNPC Says It Had A Revenue Deficit Of N1.29 Trillion This Year

According to NNPC’s presentation to the Federation Account Allocation Committee in September (FAAC).

The state oil corporation predicted monthly income of N414.9 billion in 2021, resulting in an annual gross revenue trajectory of N4.979 trillion, but it has since recorded a shortfall of N1.29 billion in nine months.

NNPC income fell to N2.44 trillion in the first nine months, falling short of its target of N3.73 trillion.

In January, it reported sales of N195.62 billion, which was 112.12 percent lower than planned.

It also had a drop in income in February, falling to N191 billion before rising to N224.5 billion in March.

It showed a dramatic drop in revenue to N156 billion in April, when oil prices were persistently low, but recovered to N320.31 billion in May.

The corporation’s revenue declined to N295.39 billion and N270.40 billion in June and July, respectively.

NNPC revenues rebounded in August, totaling N389.1 billion in August and N400.44 billion at the end of September.

Despite the low profits, the NNPC deducted N25.37 billion in February for PMS under-recovery, often known as fuel subsidy.

It spent N60.39 billion in March and N61.99 billion in April.

It followed likewise in May, withdrawing N126.29 billion, and N164.33 billion in June. In July, it paid N103.28 billion, and in August, it paid N173.13 billion.

It paid 149.28 billion in September, totaling N864.07 billion in fuel subsidy payments in nine months.

These monthly deductions had an impact on the FAAC account’s monthly revenue, resulting in a deficit of N1.38 trillion in nine months.