BUHARI GOVERNMENT NOW PAYS MORE FOR PETROL SUBSIDY THAN NIGERIA MAKES FROM SELLING OIL, GAS REPORT

In the first half of 2022, petroleum subsidy claims surpassed Nigeria's oil and gas revenue by N210 billion, The Cable is reporting.

Subsidy or under-recovery is the shortfall for the underpriced sales of premium motor spirit (PMS), better known as petrol. The cost is deducted from the federation account because Nigeria regulates petrol price and sells it at a cheaper rate for its citizens.

Within the period, the Nigerian National Petroleum Company (NNPC) Limited recorded N2.39 trillion as gross revenue from oil and gas receipts, while subsidy claims amounted to N2.6 trillion.

Of the figures, The Cable Index analysis showed that Nigeria paid N1.59 trillion to cover part of the subsidy costs in the last six months leaving an outstanding balance of N1.01 trillion to be recovered from July 2022 proceeds in August.

This year, the federal government has projected to spend N4 trillion on petrol subsidies.

The details, seen by TheCable, are contained in NNPC's monthly presentation to the federation account allocation committee (FAAC) meeting on Tuesday, July 26.

For the month of June, the oil company deducted N319.18 billion from the federation account as payment for petrol subsidy.

In January, February and March 2022, petrol subsidy payments gulped N210.38 billion, N214.78 billion, and N245.77 billion, respectively.

In April, Nigeria spent N271 billion and N327.07 billion in May 2022 to cater for the shortfall of the importation of petrol (subsidy).

"The value shortfall on the importation of PMS recovered from June 2022 proceeds is N 319,176,182,836,31 while the outstanding balance carried forward is N1.01 trillion," the report said.

Further analysis showed that NNPC failed to remit revenue to the federation account as subsidy claims eroded gains.