The Nigerian National Petroleum Corporation has alerted the federal and state governments to its dwindling contribution to the federation account as a result of the bloated fuel subsidy.
It said it would only be able to remit N12.966bn to the Federation Accounts Allocation Committee in June after removing fuel subsidy from its income.
The corporation, which stated this in a document titled, ‘January to March actual and April to June projected remittance to federation account,” indicated that it would not make any remittance for the April and May FAAC after paying fuel subsidy from its revenue.
The document, which was attached to a letter written to the Accountant General of the Federation, was dated April 26 and signed by the NNPC’s Chief Financial Officer, Umar Isa.
In the letter, copies of which were sent to the Minister of Finance, Budget, and National Planning; the Director-General of the Nigeria Governors’ Forum; the Director, Home Finance; and the Chairman, Commissioners of Finance Forum, the corporation explained how fuel subsidy had been affected its revenue to FAAC.
FAAC committee, which meets monthly to share funds among federal, state and local governments, consists of the finance minister, state commissioners of finance, state accountants – general, accountant-general of the federation and the permanent secretary of the Federal Ministry of Finance.
The money shared at FAAC comes from revenues generated by the Nigeria Customs Service, the Federal Inland Revenue Service and the NNPC. However, Nigeria’s oil corporation is the highest contributor as crude oil is the biggest source of revenue for the country.
Recall that a statement by the Edo State Governor, Godwin Obaseki, that the Central Bank of Nigeria printed N60bn to augment the March allocation following a shortfall in revenue generated controversy with the Federal Government denying the allegation.
The net revenue to FAAC in April is N111.966bn, the NNPC value shortfall as a result of petrol subsidy is put at N111.966bn, leaving zero remittance as the net revenue to FAAC after value loss.
In May, net revenue to FAAC is projected to be N171.747bn, the NNPC value shortfall is put at N171.746bn, leaving zero remittance as the net revenue to FAAC after value loss as a result of fuel subsidy payment.
In June, the projected net revenue to FAAC is at N105.337bn, the NNPC value shortfall is N92.371bn, while the net revenue to FAAC after value loss is put at N12.966bn.
According to the document, the NNPC in the letter stated that in January, February and March, the oil firm’s net revenue to FAAC after value loss were N96.86bn, N64.16bn and N41.184bn respectively.
The letter read in part, “The Accountant-General of the Federation is kindly invited to note that the average landing cost of premium motor spirit for the month of March 2021 was N184 per litre as against the subsisting ex-coastal price of N128 per litre, which has remained constant notwithstanding the changes in the macroeconomic variables affecting petroleum products pricing.