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Crude Oil Exports Contributes 82% Of Nigeria’s Dollar Transactions – NNPC

Nigerian National Petroleum Corporation (NNPC) has reported that crude oil export sales contributed $396.94 million or 82.14% of the nation’s dollar transactions in October 2019, compared with $267.97 million contribution in the previous month, while the export gas sales amounted to $86.32 million in the same month.

The Corporation also said that the country exported $5.49 billion worth of crude oil and gas between October 2018 and October 2019. In the report released on Monday, NNPC said it paid a total of $483.25 million to the Federation Account in October; 2019. The payment showed an increase of 35.77% compared to the previous month.

“October 2018 to October 2019, total NNPC remittances to FAAC was N1,527.06 billion, out of which Federation Account and Joint Venture (JV) received the sum of N723.41 billion and N803.66 billion, respectively, as proceeds from the sale of domestic crude oil and gas, as well as the corresponding Naira remittances to the Federation Account,” the report said

It recalled that in September 2019, group operating revenue, in comparison with the previous month’s performance, decreased by 27% or N148.01billion to stand at N391.80 billion. The report added that expenditure for the month declined by 29% or N152.65 billion, at N378.57 billion.

The proportion of expenditure to revenue, according to the report, was almost at par with the current month, following same trend with the last two consecutive months. The report indicated an additional increased trading surplus of N13.23 billion, compared to the N8.59 billion surplus posted in September 2019.

The NNPC report said that the increase of 54% in the month was majorly the result of improved trading surplus posted by NNPC subsidiary, National Petroleum Development Company (NPDC), which dominated the deficit in performances of other Special Business Units (SBUs) particularly in the downstream sector as well as the refineries and the corporate headquarters.

It explained that total crude oil and gas lifting were broadly classified into equity export and domestic. Both categories, the report said, were lifted and marketed by NNPC and the proceeds remitted into the Federation Account.

The report further stated that Equity Export receipts, after adjusting for Joint Venture (JV) Cash Calls, were paid directly into Federation Account domiciled in the Central Bank of Nigeria (CBN). Domestic Crude Oil of 445,000bopd was allocated for refining to meet domestic products supply. Payments are effected to Federation Account by NNPC after adjusting crude & product losses and pipeline repairs & management cost incurred during the period.

The Nigerian National Petroleum Corporation also lifts crude oil and gas other than equity and domestic crude oil on behalf of the Department of Petroleum Resources (DPR), and Federal Inland Revenue Service (FIRS), proceeds of which are remitted into Nigeria’s Federation Account.