Total US dollar payment to the Federation from sales of export Crude Oil, Gas and NLNG Feedstock for the month of August 2015 was $225.7 million according to reports contained in the NNPC August monthly report. Crude oil export sales contributed $108.9million that is 48% of the dollar payment compared with 76% contribution in previous month of July 2015, while export Gas sales and NLNG feedstock accounted for $99.65million or 44% contribution compared with 23.7% contribution in the prior month of July 2015. The remaining $16.8milion was attributable to other dollar denominated receipts.
Payment to FAAC
The report also confirms that a total of $607.8 million has been paid so far to Federal Account Allocation Committee (FAAC) in the year 2015 from sales of export Oil and Gas totaling $3,422,989,016. The NNPC in the report also claims it did not remit any sum to FAAC for the period between March to July 2015. The report further explains that the balance of $2.815 billion not remitted was used to fund the JV Cash Call for the period.
Why the poor remittance
According to the NNPC the dwindling oil price was the main reason for the paltry Dollar contribution to the Federation Account. The receipts witnessed a sharp decline of more than 67% from September, 2014, when the receipt was at its peak, to July, 2015 with dire consequences to the Federation. This continued decline in oil price led to insufficient cash available to meet monthly JV Cash Calls obligations of about $615.8m as appropriated by the National Assembly. To mitigate this effect, NNPC was compelled to sweep all the export receipt to JV Cash Call funding implying a zero remittance to Federation Account since the month of April 2015