By John Ikani
Latest report released by the Nigeria National Petroleum Corporation (NNPC) Ltd has shown that Nigeria got no revenue from crude oil export in the month of October despite an average daily oil production of 1.417 million barrels in the month of September.
The report sent to the Federation Account allocation Committee (FAAC) also revealed that petrol subsidy for October was N199 billion.
The amount would be deducted from November revenue due to FAAC in December, the corporation stated.
What the report is saying
According to the report, “The overall NNPC crude oil lifting of 11.49Mbbls (Export & Domestic Crude) in September 2021 recorded 98.5 percent increase relative to the 5.79Mbbls lifted in August 2021.
“Nigeria recorded 1.417 million daily production in September, 2021.”
On export crude oil, the report added: “No Crude Oil export revenue for the month.
“Gas: Domestic Gas and other receipts in the month was N6.78 billion. The Domestic Gas (NGL) in the month was N4.07 billion. NLNG: Feedstock valued at $59.43 million was sold to NLNG during the period out of which $52.57 million was received during the month. The difference being MCA obligations, Gas reconciliation and Credit Notes
“Other Receipts: The sum of $95.63Mn being miscellaneous receipts, Gas and Ullage fees and Interest income was received in October 2021.”
NNPC explained that “the sum of N252,968,629,898.13 was the Gross Domestic Crude Oil and Gas revenue for the month of October, 2021. “The recoveries were: Strategic Holding Cost and Pipeline repairs amounting to N7,757,631,778.84, Product losses worth N143,386,571.87 and value short fall of N163,709,314,928.61(This comprised of the N123,709,314,928.61 for September 2021 and N40,000,000,000.00 value shortfall deferred in June 2021.
“The October, 2021 value shortfall of N199,007,758,422.75 is to be recovered from the November, 2021 proceeds due for sharing at the December, 2021 FAAC meeting,” it added.
What you should know
It would be recalled that President Muhammadu Buhari, who doubles as the substantive Minister of Petroleum Resources, had announced that the state-owned oil company, the Nigerian National Petroleum Corporation (NNPC), posted a Profit after Tax of N287 billion for the year 2020.
The announcement made three months ago – precisely on Thursday August 26 – was a part of efforts geared towards re-positioning the NNPC to make it more efficient, accountable, profitable and run according to the international best practices.
This follows the signing of the Petroleum Industry Bill (PIB) into law by President Buhari on August 16, 2021, after it had been passed by the 2 chambers of the National Assembly in July.