Stats: 3,189,335 members, 7,937,021 topics. Date: Sunday, 01 September 2024 at 10:49 AM |
Nairaland Forum / Nairaland / General / Politics / Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 (5595 Views)
How NNPC Raised Crude Oil Production From 900,000bpd To 1.6mbpd (Video) / How Oshiomhole Incurred Tinubu’s Wrath Over Ajimobi’s Nomination / 2019: How Ambode Incurred Wrath Of Lagos APC Elders (2) (3) (4)
Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by ivandragon: 10:05am On Dec 26, 2018 |
The Nigerian government incurred N623.17 billion on petroleum products supply under-recovery cost between January and November this year, a summary of the monthly estimates of the expenditure by the Nigerian National Petroleum Corporation (NNPC) has shown. The document obtained by PREMIUM TIMES was part of details of NNPC financial operations submitted to the Federation Account Allocation Committee (FAAC) during its monthly funds’ allocation meeting in Abuja last week for November 2018. Details of the costs included under-recovery under the direct sale-direct purchase (DSDP) refining arrangement between January and November as well as the local refining cost between January and September this year. The document dated December 19, 2018, showed that cumulative outstanding under-recovery cost brought forward from 2017 stood at about N78.4 billion, with arrears of about N67.23 billion, while total reimbursement or FAAC deduction was about N676.49 billion for the period under review. Of the N676.49 billion, about N599.7 billion was incurred as under-recovery under the DSDP arrangement, while about N23.4 billion was under-recovered from the operations of the four local refineries in Warri, Port Harcourt, and Kaduna. Under-recovery is the name coined by the NNPC to represent the amount of subsidy the corporation incurs on behalf of the federal government for the importation and supply of petroleum products at a landing cost above the official retail pump price of N145 per litre of Premium Motor Spirit, popularly called petrol. Similarly, the DSDP arrangement involves direct purchase by accredited oil marketers of a portion of the 445,000 barrels of crude oil usually allocated for domestic refining allocation. The volume purchased is meant to be refined abroad, while refined petroleum products are brought into the country for consumption. The DSDP arrangement was introduced in 2016 to replace the controversial swap arrangement adopted by the previous government as a result of the poor refining capacity of the four local refineries. A review of the document submitted to the FAAC showed that showed that about N51.3 billion was incurred as under-recovery cost in January, while February, March, and April recorded N58.7 billion, N36.1 billion, and N82.4 billion respectively. In May, the document showed the cost under-recovery on PMS by NNPC dropped to about N36.9billion, before increasing to about N53.4 billion in June, N52.4 billion in July and N63.2 billion in August. Again, the amount incurred as under-recovery by the corporation rose to N71.8 billion in September before dropping to N51.2 billion and N65.9 billion in October and November respectively. Further details from the document revealed that the cost of under-recovery incurred by the NNPC was deducted from its revenue every month before transferring the balance to the federation account for distribution among the three tiers of government. Details showed, about N45.8 billion was deducted in January; N59.5 billion in February; March, N34.03 billion; April, N77.9 billion; May, N88.9 billion; June, N68.6 billion; July, N52.5 billion; August, N60.6 billion; September, N71.6 billion; October N51.2 billion and November N65.86 billion. The issue of fuel subsidy and cost under-recovery by NNPC has remained contentious since the present administration announced at inception in 2015, the removal of subsidy from the pricing template petrol. With the continuous rise of the crude oil price at the international market, there was a direct impact on retail prices for refined petroleum products, particularly petrol The NNPC, which emerged the sole importer and supplier of petroleum products, reported increased cost of operation, in terms of the difference between landing cost for imported petroleum products and the government approved ceiling retail pump price of N145 per litre. Last March, the NNPC said it was losing as much as N774 million daily on under-recovery due to increased supply and consumption of petrol in the country. The corporation said it was soaking up the cost as part of its operational cost as the supplier of last resort and denied receiving any support or assistance from the government. On October 16, the Senate accused the NNPC of operating a secret $3.5 billion subsidy recovery fund with the approval of President Muhammadu Buhari, without the consent of the National Assembly. On November 5, PREMIUM TIMES exclusively reported how the NNPC illegally took $1.05 billion (N378 billion at N360 to a dollar) from the Nigerian Liquefied Natural Gas (NLNG) dividend funds to secretly fund subsidy payment on petroleum products. The Group Managing Director of the NNPC, Maikanti Baru, later admitted to the Senate the withdrawal of the money from the account but said it followed presidential directives. Consequently, the Senate directed its committee on gas to investigate the allegation. Headed by the Chairman of the Senate Committee on Gas, Bassey Akpan, the committee was mandated to look at the operations of the Nigeria LNG account from 2015 to date. On November 15, the committee reported it had uncovered another illegal withdrawal of about $1.15 billion by the NNPC from the NLNG account. On December 9, the NNPC threatened to seek a legal interpretation on whether it had the right to withdraw funds from the Nigeria LNG Dividend Account without the approval of the National Assembly. https://www.premiumtimesng.com/news/headlines/302848-fuel-subsidy-how-nnpc-incurred-over-n623bn-cost-in-2018.html 1 Like 1 Share
|
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by blujoi(m): 10:44am On Dec 26, 2018 |
All hail Mr Intergrity!! But I know the PMB apologists will avoid this thread, Lol!!! Wouldn’t it have made more sense for this government to borrow funds and build at least two refineries? See monies been spent on subsidy and illegal withdrawal as directed by Mr Intergrity. 22 Likes |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by ivandragon: 1:25pm On Dec 26, 2018 |
blujoi: the looting going on under this administration would blow people's minds when it finally begins to unravel. from Board Chairmen to Ministers, everyone is just looting because they know the anticorruption war is a farce & as long as they hail the tyrant in chief, no problems. 42 Likes 4 Shares |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by basilo101: 1:40pm On Dec 26, 2018 |
The next government will expose a lot when buhari is retired in 2019 18 Likes 2 Shares |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by ignant: 1:58pm On Dec 26, 2018 |
This is just for eleven months alone as claimed by NNPC The Nigerian government incurred N623.17 billion on petroleum products supply under recovery cost between January and November this year, a summary of the monthly estimates of the expenditure by the Nigerian National Petroleum Corporation (NNPC) hasshown. Further details from the document revealed that the cost of under-recovery incurred by the NNPC was deducted from its revenue every month before transferring the balance to the federation account for distribution among the three tiers of government.Now, when you tell the poorly educated filths how the fuel subsidy operation has been re-christened, they say "No, Osibanjo said the government is not paying subsidy". This is where the greatest criminality is. NNPC have made these illegal deductions without appraisal and approval from the national assembly. On November 5, PREMIUM TIMES exclusively reported how the NNPC illegally took $1.05 billion (N378 billion at N360 to a dollar) from the Nigerian Liquefied Natural Gas (NLNG) dividend funds to secretly fund subsidy payment on petroleum products. After, one poorly educated filth will quote me with primal ignorance expecting me to respond. 21 Likes 1 Share |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by Ogaga87(m): 7:02pm On Dec 26, 2018 |
Only God go save us from this chronic scamming leaders of this generation 4 Likes |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by bkool7(m): 7:05pm On Dec 26, 2018 |
So what exactly does this mean? 2 Likes
|
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by zombieTRACKER: 7:05pm On Dec 26, 2018 |
APC government are thieves.... 5 Likes |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by musa234(m): 7:07pm On Dec 26, 2018 |
This government may become worst than Jonathan's government in the long run. The level of corruption secretly going on in this government will be mind blowing when exposed. 7 Likes |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by gurunlocker: 7:15pm On Dec 26, 2018 |
Close to 1 trn on subsidy, yet we still buy fuel at #145..... They successfully scammed millions of Nigerians by making us think they removed subsidy by increasing the pump price, yet they keep paying huge amount for subsidy even when Bubu said there's no subsidy. One thing is sure, there will be fuel pump price increase as soon as this government wins second term. They know they have nothing to lose since they've won. 9 Likes |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by hecomeshome(m): 7:17pm On Dec 26, 2018 |
It baffles me to still see people with unwavering support for Buhari's govt inspite of the glaring financial mismanagement and flagrant abuse of office. 4 Likes 1 Share |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by codeNinja1102: 7:23pm On Dec 26, 2018 |
Call on me if you need help of an experienced and versatile programmer I am posting this with ai C++ Bot I wrote. This should tell you the quality of work to expect from me
|
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by AceRoyal: 7:24pm On Dec 26, 2018 |
No matter how much the truth is suppressed by lies, it will eventually be exposed! The amount of looting going on when finally exposed will shake this country. 2 Likes 1 Share |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by symbianDON(m): 7:32pm On Dec 26, 2018 |
I'm completely speechless!! 1 Like
|
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by Deepthoughts: 7:36pm On Dec 26, 2018 |
ivandragon:This is much ado about nothing,Apc is just trying so hard to justify n cover up their massive corruption,how did the daily consumption of pms suddenly jumped to 60m litres per day?,why hasn't this under recovery amount not subjected to NASS appropriation n scrutiny?,all this long epistle is only meant to impress the gullibles only. 2 Likes |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by Sirjamo: 7:45pm On Dec 26, 2018 |
blujoi:Can you pay 200 Naira for a litre of petrol while they are building the refinery? 1 Like |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by bejeria101(m): 7:45pm On Dec 26, 2018 |
All hail govt of intergrity! |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by naijapips04: 7:48pm On Dec 26, 2018 |
Almost $1 trillion spent on subsidy in one year and Nigerians are buying fuel at 145 while a barrel is,selling below $60. GEJ is truly godsent. 3 Likes |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by blujoi(m): 7:51pm On Dec 26, 2018 |
Yes I can, If I could pay 300-350 a litre during scarcity why won’t I buy 200 bucks. See Nigerians are ready to sacrifice as long as they will enjoy the dividends later, and it was based on this premise that people believed the promises APC made in 2015 You will agree with me that any government that has the political will would build at least one refinery within 3years. Sirjamo: 2 Likes |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by jesmond3945: 7:52pm On Dec 26, 2018 |
Why can't we build refinery and cut down on importation? There is something this governenment or whichever government in power is not telling us. |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by bayelsaowei(m): 7:59pm On Dec 26, 2018 |
jesmond3945:lol.. ona go ask tire.. let us practice true federalism and develop competitively ..but no way.. 1 Like |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by israelmao(m): 8:09pm On Dec 26, 2018 |
Buhari,Baru and Buratai all have their names begin with letter 'B'.Remove all these Bs then Nigeria will experience peace and progress. |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by baralatie(m): 8:29pm On Dec 26, 2018 |
ivandragon: |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by baralatie(m): 8:33pm On Dec 26, 2018 |
Deepthoughts:daily consumption is 40 million for petrol |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by baralatie(m): 8:39pm On Dec 26, 2018 |
jesmond3945:one,the fg under the military have built 3 refineries and enacted and made all forms legalization of federal authority with respect to building of refineries. two,fg as at now does not have funds to build one three,the political structure is averse against the building of refineries unless some key issues are addressed |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by baralatie(m): 8:43pm On Dec 26, 2018 |
for me there is nothing new.I said there was subsidy ,the former minister of finance kemi adeosun was the one that was deceiving the presidency and some Nigerians with the word " under recovery" |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by lesson44: 9:23pm On Dec 26, 2018 |
Nigerians will seat in the comfort of their homes and make noise, Instead of demanding accountability from the leaders. |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by precious1967(m): 9:26pm On Dec 26, 2018 |
subsidy is a fraud by this government |
Re: Fuel Subsidy: How NNPC Incurred Over N623bn Cost In 2018 by UncleJudax(m): 9:39pm On Dec 26, 2018 |
hecomeshome:That's the problem of popularism. It usually goes fanatical .... Hugo Chavez comes to mind. |
Jonathan’s Former Aide, Okupe, Gets N100m Bail / Yoruba Nation Becomes 45th Member Of UNPO — Akintoye / The Blunder In President Buhari's Congratulatory Tweet To Joe Biden
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 78 |