NNPC Remits N1.8 Trillion Into FAAC In 13 Months

Records N8bn operational expenses on inoperative refineries.

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The Nigerian National Petroleum Corporation (NNPC) says it remitted N1.8 trillion into the Federation Account Allocation Committee (FAAC) between August 2019 and 2020.

It said of the total sum, N47.42 billion was paid into the same account in August 2020.

The figures were stated in the NNPC Monthly Financial and Operations Report for August 2020.

According to the report, the Federation and JV, as well as the Government Priority Projects, received the sum of N794.76 billion and N1.01trillion respectively.

Within the period, the total due for domestic crude sales was put at N2.09trillion with a receipt of N1.7trillion.

For gas and others, the total proceed receipts are N53.5billion and N50.5billion respectively.

In August 2020, the total domestic sales proceed due was N46.52billion while the crude and gas proceed receipts were put at approximated N43.5billion and N4.1 billion respectively.

Similarly, the report indicated that although the three refineries were inoperative, a total of N7.78billion was used for operational expenses.

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It said the Warri, Kaduna and Port Harcourt refineries cost the Corporation an operating deficit of N7.09billion.

The NNPC explained that it has been adopting a Merchant Plant Refineries Business Model since January 2017.

“The model takes cognizance of the Products Worth and Crude Costs. The combined value of output by the three refineries (at Import Parity Price) for the month of August 2020 amounted to approximately N0.70billion. No associated crude plus freight cost for the three refineries since there was no production but operational expenses amounted to N7.78billion,” it stated.

According to the report, the three refineries processed no crude in August 2020 while the combined yield efficiency is put at zero per cent, owing largely to on-going rehabilitation works in the refineries.

“The declining operational performance is attributable to the ongoing revamping of the refineries which is expected to further enhance capacity utilisation once completed,” the report read.

– Nigerian Tribune

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