The Nigerian National Petroleum Corporation (NNPC) disclosed it remitted the sum of N27.23 billion to the Federation Account in the month of July 2019.

The NNPC, according to its monthly performance report, stated that it remitted the total sum of N729.31 billion to Federation Account between July 2018 and July 2019.

However, the N27.23 billion remitted in July 2019 was quite low compared to N70.58 billion remitted in June. The difference in the two months figure is N43.35 billion, which represents a 61.29% decline in what the NNPC remitted to Federation Account.

[READ MORE: NNPC boss blames failure of refineries on negligence, says there are no excuses]

According to the performance report, this is the first time the NNPC will be remitting below N30 billion between July 2018 and July 2019. The graph below shows a snapshot of NNPC’s remittance to FAAC between January 2019 and July 2019.

Business day

Could this be a reason for the drop in Federation Accounts Allocation Commitee (FAAC) allocation to Federal,States and Local governments? As earlier published on Nairametrics

Meanwhile, the NNPC report further disclosed that the state run oil firm’s operating revenue for the period under review declined by N15.69 billion or 3.03% compared to June 2019. Also its expenditure for the period under review (July 2019) declined by N16.3 billion or 3.12% when compared to the previous period (June 2019). Indicating that the NNPC raised more than it spent in July 2019 when compared to June 2019.

[READ ALSO: NNPC vows to be transparent, set to publish details of petroleum product supplies]

Deal book 300 x 250

Also, according to the NNPC report the Joint Venture (JV) received N602.30 billion. And the sum of $297.07 million was remitted to fund the JV cost recovery for the month of July 2019 to guarantee current and future production. Total export crude oil & gas receipt for the period July 2018 to July 2019 stood at $5.88 Billion. Out of which the sum of $4.41billion was transferred to JV Cash Call as first line charge.

Standard chartered

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