{"id":199522,"date":"2022-06-28T05:53:09","date_gmt":"2022-06-28T04:53:09","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=199522"},"modified":"2022-06-28T05:57:44","modified_gmt":"2022-06-28T04:57:44","slug":"nnpc-remits-nothing-to-fg-in-may-as-petrol-subsidy-gulps-n845bn-amid-fuel-scarcity","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2022\/06\/28\/nnpc-remits-nothing-to-fg-in-may-as-petrol-subsidy-gulps-n845bn-amid-fuel-scarcity\/","title":{"rendered":"NNPC Remits Nothing to FG in May As Petrol Subsidy Gulps N845bn Amid Fuel Scarcity"},"content":{"rendered":"<p>The Federal Government (FG) has spent over N845 billion on petrol subsidy, a new report by the Nigerian National Petroleum Company Limited (NNPCL) has shown. <\/p>\n<p>The disclosure of the humongous amount spent on subsidy is coming against the backdrop of weeks of crisis and hiccups that have blighted steady supply of fuel to the citizens. <\/p>\n<p>According to its latest presentation to the Federation Account Allocation Committee,the state owned <a href=\"https:\/\/www.withinnigeria.com\/news\/2022\/06\/10\/nnpc-makes-n1-7tn-from-crude-sales-in-12-months\/\">Petroleum company<\/a> also did not remit into the federation account in May 2022.<\/p>\n<p>This is as it put the cumulative outstanding of JV recovery and Domestic Gas at N347.5billion.<\/p>\n<p>A breakdown showed that out of a gross revenue of N426bn from Domestic Crude and Gas sales in May, the value shortfall on the importation of PMS recovered from the proceeds in the month under review was N327.1billion.<\/p>\n<p>With an initial subsidy arrears of N617bn and an additional value shortfall fall of N228 billion recorded in May, to arrive at N845bn, the Company said the sum would be deducted from the June proceeds due for sharing at the July 2022 FAAC Meeting.<\/p>\n<p>This implies that since oil revenue serve as the major source of funding for the three tiers of government- Federal, States and Local Governments, the development may lead to their inability to meet statutory obligations in terms of finances. <\/p>\n<p>The report also showed that after deductions have been made, from its revenue, the Company may be left with nothing to offset the huge subsidy outstanding arrears.<\/p>\n<p>For instance, for May, 2022, a total of N18.8billion was left for remittance after deductions were made, but the sum was again deducted for government priority project due, putting remittance at zero.<\/p>\n<p>No doubt, the allocations to the tiers of government have continued to dwindle as a result of subsidy which the Federal Government (FG) has failed to remove despite Provisions in the Petroleum Industry Act (PIA).<\/p>\n<p>This has put a strain on the country\u2019s revenue amidst increasing oil prices at the international market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Government (FG) has spent over N845 billion on petrol subsidy, a new report by the Nigerian National Petroleum Company Limited (NNPCL) has shown. The disclosure of the humongous amount spent on subsidy is coming against the backdrop of weeks of crisis and hiccups that have blighted steady supply of fuel to the citizens. [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":13292,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[5370,1193,13745,38415],"class_list":["post-199522","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-faac","tag-nnpc","tag-petrol-subsidy","tag-remittance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>NNPC Remits Nothing to FG in May As Petrol Subsidy Gulps N845bn Amid Fuel Scarcity<\/title>\n<meta name=\"description\" content=\"The Federal Government (FG) has spent over N845 billion on petrol subsidy, a new report by the Nigerian National 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