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NNPC remits N729.3b, N602.3b to federation account, JV

The Nigerian National Petroleum corporation (NNPC) has said that it remitted N729.3billion and N602.30billion to the Federation Accounts and Joint Ventures (JV) respectively from July 2018 to July 2019.

The NNPC July 2019 Monthly Financial Report that made this disclosure, added that the corporation also remitted N27.23billion to the Federation Account through the Federation Accounts Allocation Committee (FAAC) in the month under review.

The report said that : “In July 2019, NNPC remitted the sum of N27.23billion to the Federation Accounts Allocation Committee (FAAC). From July 2018 to July 2019, Federation, and JV received the sum N729.31billion and N602.30billion respectively.”

Under the Naira remittance section of the report, the NNPC explained that Federation Crude Oil & Gas Revenue 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 Federation Account domiciled in the Central Bank of Nigeria (CBN).

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

The corporation noted that “Payments are effected to Federation Account by NNPC after adjusting crude & product losses and pipeline repairs & management cost incurred during the period.”

NNPC further said that its group operating revenue for the month of July 2019 declined by 3.03% at N502.49 billion, an indication of a decrease of N15.69 billion compared to the previous month’s performance.

Continuing, the report said that the expenditure for the month decreased by 3.12% or N16.03Billion and stood at N498.23 billion in the current month.

According to the report, the proportion of expenditure to revenue in July is slightly lower than the proportion recorded in June 2019.

NNPC said that “This 48th edition of the report indicates an improved trading surplus of ₦4.26billion compared to the ₦3.92Billion surplus posted in June 2019. The increase of 3.62% in the month is due largely to the enhanced surplus posted by NGC arising from half-year adjustments; coupled with increased surplus recorded by PPMC and reduced deficit by the refineries as a result of no production.”

The dollar segment of the report said that the total export receipt of $390.33 million was recorded in July 2019 as against $312.93million in June 2019.

Contribution from Crude oil amounted to $250.35 million while Gas and miscellaneous receipts stood at $76.28 million and $63.71 million respectively.

The report, however, noted that “Of the export receipts, $93.26 million was remitted to the Federation Account while $297.07million 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 $4.41 Billion was transferred to JV Cash Call as first line charge and the balance of $1.47 Billion was paid into Federation Account.”