By Emeka Okoroanyanwu
The Nigerian National Petroleum Corporation (NNPC) spent a total of N843.121 billion on fuel subsidy in 13 months. The amount was paid out between February 2018 and February 2019.
Subsidy payment in January and February 2019 hit a record high of N206.585 billion, showing an increase of N190.37 billion compared to the N16.212 billion posted for the last two months of 2018.The Nigerian National Petroleum Corporation (NNPC) spent a total of N843.121 billion on fuel subsidy in 13 months. The amount was paid out between February 2018 and February 2019.
NNPC had told the Federation Account Allocation Committee (FAAC) recently that it spent N623.16 billion on under-recovery, another name for subsidy, from January to November 2018.
In December, the figure was only N13.336 billion but rose in January to N104.347 billion and February, N102.338 billion, bringing the figure to N843.121.
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NNPC is the sole importer of petrol into the country. It deducts the cost for under-recovery before making remittances to the Federation Account.
The corporation subsidises the price of premium motor spirit by ensuring that it is sold at retail stations at the regulated N145 per litre.
According to NNPC records, subsidy dropped by 1.9 per cent to N102.338 billion in February 2019, an equivalent of N2.009 billion. In November 2018, it was N2.876 billion, dipping from the N40.53 billion recorded the previous month.
In July, August, September, October and November 2018, the financial statement revealed that NNPC declared an under-recovery of N51.2 billion, N65.9 billion, N45.8 billion, N40.5 billion and N2.9 billion.
While the naira remained stable within these periods amid low price of crude oil in the international market, averaging $64.75 per barrel in November, the corporation declared N2.876 billion as subsidy.
Yet in December when the price of crude oil dropped to $57.36 per barrels, the NNPC announced N13.336 billion under-recovery.
Similarly, in January when crude oil averaged $59.41 per barrel, the organisation declared N104.347 billion as fuel subsidy, while it deducted N102.338 billion when the price of crude oil was $63.96 per barrel.
Some politicians of the opposition had accused the NNPC of funding President Muhammadu Buhari’s 2019 election campaign with the subsidy fund, an accusation the corporation had vehemently denied.