Petrol subsidy hits N271bn in April, NNPC declares zero remittance for the 4th time

The Nigerian National Petroleum Company Limited has declared another N271.13bn as a shortfall for the importation of petrol (subsidy) in April 2022.

As reported by The Cable, NNPC had spent N947.53 bn on petrol subsidy this year — more than half of 2021 subsidy spending.

NNPC said this in its monthly presentation to the Federation Account Allocation Committee meeting on Tuesday, April 24.

The estimated Value Shortfall of N 874 503 649 663 98 bn (consisting of arrears of N 371 billion, plus estimated April 2022 Value Short Fall of N 503 313 767 828 14 is to be recovered from May 2022 proceed due for sharing at June 2022 FAAC Meeting.”

In January, February and March 2022, petrol subsidy gulped 210.38 billion, N219.78 billion, and N245.77 billion, respectively.

Payments for petrol subsidies have continued to dwindle federation revenue.

This year alone, the federal government has budgeted to spend N4 trn on costly petrol subsidies — as a result of high global oil prices due to the Russia-Ukraine war.

In the month under review, the report said NNPC lifted overall crude oil of 8.80 million barrels (export domestic crude) in March 2022, representing a 10 per cent decrease relative to the 9.77 million barrels lifted in February 2022.