NNPC deducted N3.3trn from Federation Account for subsidy in eleven months

The Nigerian National Petroleum Company (NNPC) Limited deducted over N3.3 trillion from January to November, last year to pay for fuel subsidy.

The deductions were made from revenue the NNPC Limited was supposed to remit to the Federation Account.

This is contained in the Federation Account Allocation Committee (FAAC) Post-Mortem Sub-Committee (PMSC) report presented to FAAC on Tuesday in Abuja.

According to the report, NNPC “deducted N152,852,247,197.02 as PMS value shortfall recovery for November 2022. This brings the cumulative deduction between January and November 2022 to N3,302,465,705,596.30”.

The report also accused the NNPC of failing to disclose the locations Government Priority Projects it inherited when it transformed to NNPCL.

According to the report, “NNPC Ltd was yet to disclose the locations of the Government Priority Projects to enable the Sub-Committee visit and assess the level of work done in view of the deductions from the Federation Account”.

The report noted that “following the implementation of the Petroleum Industry Act, 2021 which transferred Joint Venture (JV) assets in the oil and gas Sector to NNPC Limited with the exception of Production Sharing Contract assets, the Priority Projects are owned by NNPC Limited.”

Between January 1999 and July 2022, the NNPC is said to have deducted N1,096,867,042,733.94 for government priority Projects, an amount, which should have gone into the Federation Account.