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Subsidy hits N199bn as Nigeria records zero revenue from oil export

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, latest report by the Nigeria National Petroleum Corporation, NNPC, has shown.

NNPC in its report to the Federation Account allocation Committee, FAAC, released at the weekend, disclosed that petrol subsidy for October was N199 billion.

‘’The amount would be deducted from November revenue due to FAAC in December,’’ the corporation stated.

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 productions in September, 2021”.

On export of crude oil, the report added: “No crude oil export revenue for the month.    Domestic gas and other receipts in the month were 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 $95.63 million, 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 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.’’

(Vanguard)

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