As the sole importer of fuel in a new arrangement approved by the Presidency, the corporation was also the body managing the subsidy component
Uche Usim, Abuja
The Nigerian National Petroleum Corporation (NNPC), the sole importer of petrol, spent N623.16 billion on fuel subsidy, representing the under recovery expenses incurred between January and November.
Details of the under recovery outlay was contained in a document presented by the national oil company to the Federation Account Allocation Committee (FAAC) in its final sitting for 2018 in Abuja last week.
As the sole importer of fuel in a new arrangement approved by the Presidency, the corporation was also the body managing the subsidy component, in what government said was a deliberate effort to sanitise the subsidy arrangement by closing avenues for abuses.
In the FAAC presentation dated December 19, the Corporation stated that apart from the N623.16 billion, there was also arrear of N67.23 billion, bringing the total amount to N676.49 billion.
Out of the N676.49 billion, N599.74 billion was incurred as under recovery under the Direct Sales Direct Purchase arrangement while N23.43billion was under recovered from its refinery.
Further breakdown of the N623.16billion under recovery showed that N51.24billion was incurred in January while February, March and April recorded N58.66 billion, N36.09 billion, and N82.4 billion respectively.
In May, the amount of under recovery incurred on PMS dropped to N36.87 billion. It however rose to N53.41 billion in June, dropped to N52.43 billion in July, rose again in August to N63.18 billion.
The amount climbed up further to N71.8 billion in September before dropping down to N51.18 billion and N65.86 billion in October and November respectively.
The report stated that the amount incurred as under recovery was deducted from the Federation Account in this order; January N45.78 billion, February N59.51 billion, March N34.03 billion, April N77.9 billion and May N88.9 billion.
It said June saw the corporation deducting N68.6billion while July, August, September, October and November recorded deductions of N52.5 billion, N60.6 billion, N71.56billion, N51.18 billion and N65.86 billion in that order.