The Federal Government has revealed that subsidy of N430.165bn was spent on petrol in January and February this year through the Nigerian National Petroleum Company Limited.

NNPC disclosed this in its latest presentation to the Federation Account Allocation Committee meeting for March 2022, as it informed the meeting that it would deduct about N328bn from what would be shared by FAAC in April 2022.

In the presentation, CEOAFRICA learnt that the national oil company described its subsidy spending as an under-recovery of PMS/value shortfall.

The development, which means state governments may sinker deeper into financial crisis as there will be a lower amount to be shared by FG, States and LGs at the monthly FAAC meeting.

The NNPC stated that in January this year the sum of N210.38bn was used to subsidize petrol, while N219.78bn was spent as subsidy in February.

NNPC, being the sole importer of petrol into Nigeria, subsidises the commodity for users of petrol. The subsidised pump price of petrol as approved by the Federal Government is between N162 to N165/litre.

But operators had repeatedly stated that the actual cost of the commodity should be above N500/litre going by the rise in global crude oil prices and the fluctuations in the foreign exchange rate in Nigeria.

Meanwhile, the oil firm stated that it would deduct about N328bn as petrol subsidy from what would be shared by FAAC in April this year.

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It said, “The estimated value shortfall of N328,004,248,900.01 (consisting of N253,004,248,900.01 for February 2022 recovery plus the balance of November 2021 spot cargo arrears of N75,000,000,000.00) is to be recovered from March 2022 proceed due for sharing at the April 2022 FAAC meeting.”

It further noted that a value shortfall of N219,783,148,011.13 was charged for the month (of March) which comprises of N195,975,376,910.12 for January 2022 plus part of the November 2021 spot cargo arrears of N23,807,771,101.00.

In its notes to the March 2022 FAAC executive summary, the oil company stated that the overall NNPC crude oil lifting of 9.94 million barrels (export and domestic crude) in January 2022 recorded 22.26 per cent increase relative to the 8.13 million barrels lifted in December 2021.

It said that Nigeria recorded 1.39 million barrels per day production in January 2022, citing the Organisation of Petroleum Exporting Countries.

NNPC stated that crude oil export revenue received in February 2022 amounted to $2.73m, while domestic gas receipts in the month was N13.10bn.

It stated that the sum of N266,527,887,255.56 was the gross domestic crude oil and gas revenue for the month of February 2022.