NNPC remits N729.3b, N602.3b to Federation Account

The Nigerian National Petroleum Corporation  (NNPC) said it remitted N729.3billion and N602.30billion to the Federation Accounts and Joint Ventures (JV) respectively between July 2018 and July 2019.

Its July 2019 Monthly Financial Report , added that the state-run oil firm also remitted N27.23billion to the Federation Account through the Federation Accounts Allocation Committee (FAAC) in the month under review.

“In July 2019, NNPC remitted N27.23billion to the Federation Accounts Allocation Committee (FAAC). From July 2018 to July 2019, Federation, and JV received the sum N729.31billion and N602.30billion respectively,” the report said.

Under the naira remittance section of the report, the NNPC said the Federation Crude Oil & Gas Revenue, Federation Crude Oil and Gas Lifting were broadly classified into equity export and domestic.

Both categories, according to the report, are lifted and marketed by NNPC and the proceeds remitted into the Federation Account.

It added that equity export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into Federation Account domiciled in the Central Bank of Nigeria (CBN).

The report said domestic crude oil of 445,000bopd is allocated for refining to meet domestic products supply.

“Payments are effected to Federation Account by NNPC after adjusting crude & product losses and pipeline repairs & management cost incurred during the period,” it explained.

NNPC further said its group operating revenue for the month of July 2019 declined by 3.03 per cent at N502.49 billion, an indication of a decrease of N15.69 billion compared to the previous month’s performance.

Continuing, the report said the expenditure for the month dipped by 3.12 per cent or N16.03billion and stood at N498.23 billion in the current month.

According to the report, the proportion of expenditure to revenue in July was slightly lower than the proportion recorded in June 2019.

NNPC said: “This 48th edition of the report indicates an improved trading surplus of N4.26billion compared to the N3.92Billion surplus posted in June 2019. The increase of 3.62per cent in the month is due largely to the enhanced surplus posted by NGC (Nigeria Gas Company) arising from half year adjustments; coupled with increased surplus recorded by PPMC and reduced deficit by the refineries as a result of no production.”

The dollar segment of the report said total export receipt of $390.33 million was recorded in July 2019 as against $312.93million in June 2019.

Contribution from crude oil amounted to $250.35 million while gas and miscellaneous receipts stood at $76.28 million and $63.71 million respectively.

“Of the export receipts, $93.26 million was remitted to the Federation Account while $297.07million was remitted to fund the JV cost recovery for the month of July 2019 to guarantee current and future production. Total export crude oil & gas receipt for the period July 2018 to July 2019 stood at $5.88 Billion. Out of which the sum of $4.41billion was transferred to JV Cash Call as first line charge and the balance of $1.47billion was paid into Federation Account,”  the report noted.

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