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NNPC Remitted N55.96b Into Federation Account In June


The Nigerian National Petroleum Corporation (NNPC) has disclosed that in June 2016, it transferred the sum of N55.96 billion into the Federation Account.

It further said in the same month, a deficit of N26.51 billion was recorded in its operations.

NNPC made disclosed these information and others in its monthly financial report for June released in Abuja on Sunday.

“NNPC transferred the sum of N55.96 billion into the Federation Account during the month under review from the net domestic crude oil receipt of N102.68 billion.

“Also, the 23rd instalment of the refund to the Federal Government of N6.33 billion was remitted into the Federation Account,” the report said.

NNPC stated that the June financial report represents a significant decline from a surplus of N274 million reported in May, explaining that this was due to a decline in its revenue generation as a result of 13.30 per cent (or N14.9 billion) drop in petroleum products sale by the Products and Pipeline Marketing Company (PPMC) and an increase in the cost of products distribution.

The report further pointed out that, “June 2016 operations witnessed the major impact of incessant vandalism and during the month, more than 261 vandalised points were recorded.

“In Nigerian Petroleum Development Company (NPDC), a substantial portion of crude oil sales for the month estimated to be in excess of the deficit could not be realised due to Force Majeure declared by Shell Petroleum Development Company (SPDC) as a result of the vandalised 48-inch Forcados export line.”

“Poor performance is attributable to upsurge in attack and sabotage of oil facilities in the Niger Delta.

“At Forcados Terminal alone, about 380,000 barrels of oil per day were shut in since February, following the force majeure declared by SPDC.

“A number of crude oil liftings have been deferred until the repair is completed,” the report said.

It further said other major terminals affected by the renewed spate of vandalism included Bonny, Usan, and Que Iboe terminals.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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