The Nigerian National Petroleum Corporation (NNPC) says it spent N623.16 billion on under-recovery otherwise known as subsidy from January to November 2018.
This was contained in a report by NNPC to Federation Account Allocation Committee (FAAC) at the last meeting in Abuja where revenue generating agencies gave an account of their performances in the year.
In the report dated December 19, 2018, NNPC revealed that it has arrears of N67.23 billion for deductions made from FAAC.
The report said there is a total FAAC deduction of N676.49 billion comprising N599.74 billion as under-recovery for Direct Sales Direct Purchase (DSDP) arrangement and N23.43 billion as under-recovered from its refineries.
The document said that the amount incurred by the NNPC as under-recovery was deducted from the Federation Account as follows: January N45.78 billion, February N59.51 billion, March N34.03 billion, April N77.9 billion and May N88.9 billion.
A breakdown of the N623.16 billion under-recovery showed that N51.24 billion was incurred in January while February, March and April recorded N58.66 billion, N36.09 billion, and N82.4 billion respectively.
In May, the amount of under-recovery incurred by NNPC on PMS dropped to N36.87 billion but rose to N53.41 billion in June, N52.43 billion in July and N63.18 billion in August.
In June 2018, the corporation deducted about N68.6 billion; in July, August, September, October and November the Corporation made deductions of N52.5 billion, N60.6 billion, N71.56 billion, N51.18 billion and N65.86 billion respectively.
Apart from the deductions, NNPC spent N71.8 billion on subsidy or under-recovery in September before it dropped to N51.18 billion and N65.86 billion in October and November respectively.
