According to the latest report from Nigeria National Petroleum Corporation (NNPC), no revenue was gotten in Nigeria from crude oil export in the month of October and this occurred despite an average daily oil production of 1.417 million barrels in the month of September and was stated in its report to the Federation Account Allocation Committee (FAAC).
The sum payable to the Federation Account Allocation Committee (FAAC) in December would be collected from November income stated by Nigeria National Petroleum Corporation (NNPC).
The entire NNPC crude oil lifting of 11.49 million barrels (export and domestic crude) in September 2021 recorded a 98.5 percent rise relative to the 5.79 million barrels lifted in August 2021 in September 2021, Nigeria produced 1.417 million units per day.
NNPC explained that “the sum of N252,968,629,898.13 was the gross domestic crude oil and gas revenue for the month of October, 2021. “The recoveries were: N7,757,631,778.84 in Strategic Holding Costs and Pipeline Repairs, N143,386,571.87 in Product Losses, and N163,709,314,928.61 in Value Shortfall (this included the N123,709,314,928.61 for September 2021 and the N40,000,000,000.00 value shortfall deferred in June 2021).
“The value deficiency of N199,007,758,422.75 in October 2021 will be recovered from the proceeds due for sharing at the FAAC meeting in December 2021.”
These recent development highlights the dire situation the country is facing due to the subsidy regime. The fact that crude oil export is the country’s major source of revenue and the nation made a zero revenue from export due to subsidy expenses is a cause for alarm. The chain effect of these developments points to the evitable subsidy removal policy that the FG is proposing, because facts and data has made it clear that subsidy payment is no longer tenable, leaving Nigerians with the painful reality of an increase in the prices of Petroleum Products AGO PMS DPK.
Source: Vanguard, Narialand, Punch News.
