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NNPC fails to remit money to the federation account

NNPC Headquarters

The Nigerian Petroleum Company (NNPC) has not The projects NNPC listed include Subsidy pipeline
been able to remit money to the federation account security and maintenance cost payment, refineries
since the beginning of January 2022. This is in spite repairs, national domestic gas development, cost
of the fact that oil prices in the international market recovery/cash call and oil search.
has been rising as a result of the Ukraine/ Russian Others are Renewable Energy Development (REID),
crisis. Nigeria Morocco Pipeline, Gas Infrastructure
The inability of NNPC to remit funds has put severe Development and Crude Oil Pre-Export Inspection
pressure on the finances of the government at Agency Expenses.
federal, state and local government levels. The breakdown of NNPC expenditure in the FAAC
NNPC has provided a breakdown of how it spent all report is as follows:
the money it made from oil sales. Some genuine N 1.59 trillion was spent on fuel subsidy
explanations were given as to why the NNPC could N 658 billion was spent on cash recovery/cash
not make remittances to the federal account; these calls
explanations were detailed in its July Federation Other expenses include Oil search, N14.32 billion
Account Allocation Committee (FAAC) presentation and Pipeline securities, N12.42 billion
document that was retrieved from its website. Refineries rehabilitation- N54.6bn
The document revealed that NNPC earnings from Pre-Export Financing- N35bn
crude oil and gas sales between the months of National Domestic Gas Development- N8bn
January to June was N2.38 trillion. Nigeria Morocco Pipeline- N3bn
However, NNPC was quick to suggest that a Gas Infrastructure Development – N7.4bn.
significant amount of the money earned during the
period was spent on 10 projects, leaving the state
government with no funds.

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