NNPCL deducts N1.35 trillion from federation account for subsidy, Pipeline operations

According to the NNPC, the deducted amount was used to offset subsidy payment repairs, and management of pipeline operations, as well as other government priority projects.

Recall for about seven months, the NNPC did not make any remittances into the coffers of the federation account with subsidy payments accounting for the bulk of the reasons.

The body instead, had deducted funds meant to be remitted to the FAAC to make up the cost of petrol subsidy over the months, resulting in zero revenue remittances.

The report also revealed that for subsidy payments, the sum of N448.78 was deducted in August 2022, and N447.93 billion in July.

The breakdown of the figure in July revealed payment for petrol subsidy gulped N319.17 billion, amount paid for pipeline operations, repairs and management cost N8.4 billion while strategic holding cost was N989.74 million.

Further details of the report also showed that in June 2022, N451.86 billion was deducted and the breakdown showed petrol subsidy accounted for N327.06 billion, pipeline operations, repairs and management cost N158.3 million, and strategic holding gulped N339.9 million.

For January, February, and March 2022, petrol subsidy payments totaled N210.38 billion, N219.78 billion, and N245.77 billion respectively.

The sum of N271 billion, N327.07 billion, and N319.18 billion was spent on petrol subsidy in April, May, and June, respectively.