NNPC to deduct N127bn from FAAC, plans $5bn AfrieximBank loan

NNPC to deduct N127bn from FAAC, plans $5bn AfrieximBank loan

NNPC to deduct N127bn from FAAC, plans $5bn AfrieximBank loan

The Group Managing Director of the Nigerian National Petroleum Company Limited, Mele Kyari, on Thursday announced that the NNPC was working with AfrieximBank to raise $5bn financing for the oil firm.

Kyari announcement came as the national oil firm told the Federation Accounts Allocation Committee that it would deduct N127bn from FAAC allocation in February 2022 being fund spent on petrol subsidy.

In a tweet via his official Twitter handle, the NNPC boss stated that the $5bn financing would be used to boost the company’s upstream ventures.

He added that the loan would also be used to facilitate the NNPC’s energy supply programme, adding that it would create opportunities for both partners.

Kyari said, “Afreximbank working with NNPC Ltd to raise $5bn financing to support our upstream businesses and facilitate energy supply and transition. Opening gate for many more opportunities of collaboration with Afreximbank.”

This came as the oil company made it clear to FAAC that it would deduct N127bn from what the three tiers of government would share by next month, describing the fund as value shortfall to be recovered on petrol imports.

The company disclosed this in its presentation at the January 2022 FAAC, which was obtained in Abuja on Thursday by our correspondent.

The NNPC is the sole importer of petrol into Nigeria and subsidises the commodity, hence it deducts the money it spends on petrol subsidy from what it remits to FAAC monthly.

It said, “The November 2021 value shortfall recovery on the importation of PMS amounted to N270,831,143,856.56. The recovery consists of November 2021 value shortfall of N220,110,853,427.56 plus the outstanding value shortfall recovery of N50,720,290,429.00 for the month of October 2021.

“The estimated value shortfall of N127,035,585,356.25 is to be recovered from January 2022 proceed due for sharing at the February 2022 FAAC meeting.”

In the presentation, the company stated that the overall NNPC Crude oil lifting of 8.31 million barrels (export and domestic crude) in November 2021 recorded 7.78 per cent increase relative to the 7.71 million barrels lifted in October 2021.

It said Nigeria recorded an average production of 1.27 million barrels per day in November 2021, adding that crude kil and gas export revenue received in December 2021 amounted to $5.13m $40.14m respectively.

The oil firm further stated that the sum of N352,518,463,538.25 was the gross domestic crude oil and gas revenue for the month of December 2021.

About Smile Iliya 226 Articles
My name is Smile Iliya Agwom also known as Mex, I'm a blogger, web designer and a promoter from Plateau state Nigeria.

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