Uche Usim, Abuja
The Nigerian National Petroleum Corporation (NNPC) has released its July operational report, showing it remitted N1.33 trillion into various coffers from July 2018 to July 2019 in line with extant laws.
The national oil company said it remitted N729.3 billion to the federation account, while N602.30 billion was paid into the Joint Ventures (JV).
According to the report, the corporation remitted separate N27.23 billion to the federation account through the Federation Accounts Allocation Committee (FAAC) in the month under review.
It , however , noted that its group operating revenue for the month of July 2019 declined by 3.03 per cent at N502.49 billion, an indication of a decrease of N15.69 billion compared to the previous month’s performance.
But it indicated an improved trading surplus of N4.26 billion compared to the N3.92 billion surplus posted in June 2019.
The increase of 3.62 per cent in the month , according to the report, was due largely to the enhanced surplus posted by Nigeria Gas Company (NGC) arising from half-year adjustments; coupled with increased surplus recorded by PPMC and reduced the deficit by the refineries as a result of no production.
The dollar segment of the report says that the total export receipt of $390.33 million was recorded in July 2019 as against $312.93million in June 2019.
Contribution from crude oil amounted to $250.35 million while gas and miscellaneous receipts stood at $76.28 million and $63.71 million respectively.
The report, however, notes that “of the export receipts, $93.26 million was remitted to the Federation Account, while $297.07 million was remitted to fund the JV cost recovery for the month of July 2019 to guarantee current and future production. Total export crude oil & gas receipt for the period July 2018 to July 2019 stood at $5.88 billion. Out of which the sum of $4.41 billion was transferred to JV Cash Call as first line charge and the balance of $1.47 billion was paid into Federation Account.”
The report adds: “In July 2019, NNPC remitted the sum of N27.23 billion to the Federation Accounts Allocation Committee (FAAC). From July 2018 to July 2019, Federation, and JV received the sum N729.31 billion and N602.30 billion respectively.”
Under the naira remittance section of the report, the NNPC explained crude oil and gas lifting were broadly classified into equity export and domestic.
According to the report, both categories were lifted and marketed by NNPC and the proceeds remitted into the federation account.
It added that equity export receipts, after adjusting for Joint Venture (JV) cash calls, were paid directly into federation account domiciled in the Central Bank of Nigeria (CBN).
The report noted that domestic crude oil of 445,000bopd was allocated for refining to meet local demand.
The corporation noted that “payments are effected to federation account by NNPC after adjusting crude & product losses as well aspipeline repairs & management cost incurred during the period.”
The report states that the expenditure for the month decreased by 3.12 per cent or N16.03 billion and stood at N498.23 billion in the current month.