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.
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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.”
Source: The Nation