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Wednesday, March 29, 2023

NNPC to Remit Zero Naira to Federation Account in May

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The Nigerian National Petroleum Corporation or NNPC has said it will be remitting exactly zero naira to the Federation account in May 2021.

This is due to the lack of increase in the pump price of petrol as fuel prices rose over the past few months.

In a letter to the Accountant General of the Federation (AGF) by NNPC seen by MoneyCentral, dated April 26th, the NNPC said the average landing cost of Premium Motor Spirit (PMS) for the month of March 2021 was N184 per litre as against the subsisting ex-coastal price of  N128 per litre, which has remained constant despite changes in the macroeconomic variables affecting petroleum products pricing.

“As the discussions between Government and labour are yet to be concluded, NNPC recorded a value shortfall of N111.96 billion in February 2021 as a result of the difference,” the NNPC said.

“Accordingly the AGF is invited to note that the sum of N111.966 billion will be deducted from April 2021 Oil and Gas proceeds due to the federation in May 2021, which will translate to zero remittance to the Federation Account from NNPC in the month of May 2021. This is to ensure continuous supply of Petroleum Products to the nation and guarantee energy security,” NNPC concluded.

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