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NNPC dollar payments to federation account dip by 30.50%

The Nigerian National Petroleum Corporation (NNPC) said it recorded a total export sale of $232.87 million in August 2019, decreasing by 30.50 per cent compared to the previous month.

Crude oil export sales contributed $150.73 million (64.73 per cent) of the dollar transactions compared with $249.35 million contribution in the previous month; while the export gas sales amounted to $82.14 million in the month.

This is contained in the Monthly Financial Report of the corporation.

On dollar payments to the JV Cost Recovery and Federation Account, the NNPC said that total
export receipt of $205.36 million was recorded in August 2019 as against $390.33million in July 2019.

The corporation also noted that contribution from crude oil, amounted to $115.16 million while gas and miscellaneous receipts stood at $89.71 million and $0.50 million respectively.

Of the export receipts, said the report, $94.55 million was remitted to the Federation Account, while $110.82million was remitted to fund the JV cost recovery for the month of August 2019 to guarantee current and future production.

The report said that “total export crude oil and gas receipt for the period August 2018 to August 2019 stood at $5.70 billion, out of which the sum of $4.23billion was transferred to JV Cash Call as first line charge and the balance of $1.47 billion.”

On naira payments to the Federation Account, the NNPC said that in the month under review, the NNPC remitted the sum of N51.79billion to the Federation Accounts Allocation Committee (FAAC).

From August 2018 to August 2019, Federation and JV received the sum N1,298.99billion and N655.56billion respectively, according to the report.

The NNPC also disclosed that in the month under review, the group operating revenue increased by 7.58 per cent at N540.60billion, representing an increase of N38.10billion compared with the previous month’s performance.

The report noted that expenditure for the month followed same trend with an increase of 7.46% or N37.16billion and stood at N535.40billion.

Continuing, the corporation said: “The appreciable increase of 22% in the month is due largely to the improved surplus posted by NPDC.

The percentage increase in performance of NPDC is commensurate to the decline in NGC’s performance compared to last month when there was an half year adjustment, coupled with increased surplus posted by Duke Oil and reduced deficit by NPSC.”

The report explained that the federation crude oil and gas lifting are broadly classified into equity export and domestic.

Both categories, according to the report, are lifted and marketed by NNPC and the proceeds remitted into the Federation Account.

It added that equity export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into the Federation Account domiciled in the Central Bank of Nigeria (CBN).

The NNPC said that domestic crude oil of 445,000bopd is allocated for refining to meet domestic products supply.

It also noted that “payments are effected to the Federation Account by the NNPC after adjusting crude and product losses and pipeline repairs and management cost incurred during the period”.