NNPC spends N492.05 billion on subsidy, salaries, other expenses in one month
.Records N43.57 billion trading surplus
Nigeria’s subsidy regime, salary and other operating revenue cost the Nigerian National Petroleum Corporation (NNPC) N492.05 billion in the month of April this year.
Recall that the Group Managing Director of the Corporation, Mele Kyari had in April stated that the state oil company would not remit any money to the Federation Account as the burden of subsidy left the three tiers of government, federal, states and local governments at the mercy of signature bonuses raised from marginal bid round.
The NNPC Monthly Financial and Operations Report (MFOR) released at the weekend, showed that only ₦43.57bn was realized by the company in the month under review even though as much as half a trillion naira was generated.
For years, NNPC has been a loss-making entity, a development attributed to undue legislation and political interference.
NNPC’s expenditure for the month of April increased by 17.24 per cent or N72.34bn to stand at N492.05bn, while expenditure as a proportion of revenue stood at 0.92, same as the previous month.
The data noted the positive contribution of the Corporation’s Upstream subsidiary, the Nigerian Petroleum Development Company (NPDC) as well as entities like; Duke Oil and the National Engineering and Technical Company (NETCO).
Over 1.67billion litres of Premium Motor Spirit (PMS) translating to 55.79mn liters/day were supplied in the month, the report noted.
The menace of pipeline vandalism went down by 34.29 per cent from 70 in the previous month to 46 in April 2021.
While Port Harcourt area accounted for 54%, Mosimi area accounted for 46 per cent of the vandalized points.
In the gas sector, a total of 209.27billion cubic feet (bcf) of natural gas was produced in the month under review, translating to an average daily production of 6,975.72million standard cubic feet per day (mmscfd).
A total of 2,902.52bcf of gas was produced, representing an average daily production of 7,369.76mmscfd during the period, it added.
The report revealed that crude oil production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 62.07 per cent 19.95 per cent and 17.98 per cent respectively to the total national gas production.
In terms of natural gas off-take, commercialization and utilization, out of the 206.40bcf supplied in April 2021, a total of 126.83bcf of gas was commercialized consisting of 42.92bcf and 83.91bcf for the domestic and export markets respectively.
This translates to a total supply of 1,430.90mmscfd of gas to the domestic market and 2,976.94mmscfd of gas supplied to the export market for the month.
This implies that 61.45 per cent of the average daily gas produced was commercialized while the balance of 38.55 per cent was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.74 per cent for the month under review (i.e. 670.19mmscfd) compared with average gas flare rate of 7.42 per cent.
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