The Nigerian National Petroleum Company Limited says the Federal Government has spent N430.165bn as subsidy on petrol, in January and February this year.
NNPC disclosed this in its latest presentation to the Federation Account Allocation Committee meeting for March 2022.
It also informed the meeting that it would deduct about N328bn from what would be shared by FAAC in April 2022.
In the presentation, the national oil company described its subsidy spending as an under-recovery of PMS/value shortfall.
The development means state governments may sink deeper into the financial crisis as there will be a lower amount to be shared by FG, states and LGs at the monthly FAAC meeting.
The NNPC disclosed that in January this year the sum of N210.38bn was used to subsidise petrol, while N219.78bn was spent as subsidy in February.
NNPC, being the sole importer of petrol into Nigeria, subsidises the commodity for users of petrol. The subsidised pump price of petrol as approved by the Federal Government is between N162 to N165/litre.
But operators had repeatedly stated that the actual cost of the commodity should be above N500/litre going by the rise in global crude oil prices and the fluctuations in the foreign exchange rate in Nigeria.
The firm said, “The estimated value shortfall of N328,004,248,900.01 (consisting of N253,004,248,900.01 for February 2022 recovery plus the balance of November 2021 spot cargo arrears of N75,000,000,000.00) is to be recovered from March 2022 proceed due for sharing at the April 2022 FAAC meeting.”
