NNPC Gives Breakdown of its Finances Revealing over N1.9trn went into Oil Search, Refineries, Subsidy in 2021
- The full breakdown of NNPC 11 months spending in 2021 is now public as subsidy payments exceeded N1 trillion
- Oil search and refinery rehabilitation are two additional areas where a large portion of the revenue earned by NNPC this year was spent on
- The federal government has set a goal of removing subsidy payments entirely by 2022 in order to relieve the strain on NNPC finances.
The National Petroleum Corporation, NNPC, has provided a breakdown of its expenditure for the first 11 months(January to November) of 2021.
According to the government-owned oil corporation, a total of N2.47 trillion have been spent between January and November 2021 on various projects.
The money was spent from the N3 trillion revenue exporting oil, Kerosene, Gas sales among other activities during the period.
Source: Facebook
NNPC provided the details in its Monthly Federation Account and Allocation Committee (FAAC) report obtained by Legit.ng on its Website.
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The spending was on different projects which includes fuel subsidy, pipeline management, oil search, renewable energy development, refineries rehabilitation among others.
Breakdown of NNPC spending in 2021 so far
The biggest expenditure is fuel subsidy payment called under-recovery. This gulped N1.16 trillion in the 11 months period. The highest amount was paid in July (N173.13bn) TheCable reports.
NNPC N1 trillion spend on Joint Venture Cost Recovery(t1/t2) was the second-highest amount.
National Domestic Gas Development also cost N42.4 billion followed by Gas Infrastructure Development N34.06 billion.
During the 11 months period, NNPC spent N30.22 billion searching for oil under its frontier exploration services.
Other expenses in 11 months
- Pipeline Security & Maintenance cost- N45 billion
- Refinery Rehabilitation- N91.6 billion
- Pre-Export Financing- N55 billion
- Crude Oil Pre-Export Inspection Agency Expenses- N8.77bn
- Nigeria Morocco Pipeline- N0.83 billion
NNPC fails to explain missing N2trn worth of domestic crude oil
Meanwhile, Legit.ng had earlier reported how the Auditor-General has raised an alarm on domestic crude oil lifted by the NNPC and was not accounted for in 2019.
The 104.48 million barrels of missing crude oil could have added at least N2 trillion to the federal government's coffers.
The federal government's 2019 budget of N8.83trn was largely financed by debts which currently stands at N35.5trn as of June 30.
Source: Legit.ng
