SAT 07 AUG, 2021-theGBJournal- The Nigerian National Petroleum Corporation (NNPC) is set to withhold NGN117.41 billion from the three tiers of government this month as it continues its regime of deduction from the federation account.
According to the information from NNPC’s July presentation on its activities to the FAAC, the corporation was only able to contribute NGN47.10 billion during the month. However, its projected remittances to the joint account remained at about NGN122.00 billion, leaving a deficit of about NGN75.00 billion.
The FAAC document indicated that year-to-date, NGN90.86 billion was remitted to FAAC in January, NGN64.16 billion was contributed in February, while NGN41.18 billion was contributed in March. NNPC remitted zero naira in April, but able to make a payment of NGN38.61 billion and NGN47.16 billion in May and June respectively.
Considering the higher oil prices compared to the prior year, we expect the subsidy payments to weigh on the NNPC income and consequently support the continuous deduction from the federation account. Barring any major shock to oil prices, we expect subdued FAAC remittance in the coming months.
Twitter-@theGBJournal|Facebook-The Government and Business Journal|email: govandbusinessj@gmail.com
