Home » Energy » NNPC Posts $607 m To Federation Account In H1

NNPC Posts $607 m To Federation Account In H1

Nigerian National Petroleum Corporation (NNPC) declared yesterday that that it has remitted $607 million from the Nigerian oil and gas assets under its oversight into the federation account.

Spokesman, Mr. Ohi Alegbe, stated that the remittance was part of a total of $3.420 billion the country earned from export of crude oil and gas between January and August 2015.

The report indicates that a total of $607.8 million has been paid so far to the Federation Accounts Allocation Committee, FAAC in the year 2015 from sales of export Oil and Gas as dollar proceeds.

A further breakdown indicates that the total export crude Oil and Gas receipt for the period of January to August 2015 amounted to $3.420billion.

Of the total receipts, the sum of $0.61billion was remitted to Federation Account as dollar proceeds while the balance of $2.815billion was used to fund the JV Cash Call for the period.

The report notes that the receipts witnessed a sharp decline of more than 67% from September, 2014, to July, 2015 following crash in the prices of crude oil in the international market.

According to Mr. Alegbe, continued decline in oil price led to insufficient cash available to meet monthly JV Cash Calls obligations of about $615.8m as appropriated by the National Assembly.

To mitigate this effect, NNPC was compelled to sweep all the export receipt to JV Cash Call funding implying a zero dollar proceed remittance to the Federation Account since the month of April 2015.

“The sum of N723.82billion for Domestic Crude Oil and Gas Sales proceeds has been paid to the Federation Account from January to August 2015 as Naira proceeds,” he stated.

The declaration, he said, was part of the new transparent measures that entail monthly publication of the corporation’s provisional financial and operational reports.

The full financial reprot is said to provide an overview of NNPC’s operations across the oil and gas value chain as well as NNPC’s agency function on behalf of government from the period January to August 2015.

The report, he said, provides detailed and statistical insight into crucial aspects of the corporation’s activities ranging from “National Crude Oil & Natural Gas Production, Lifting and Utilization; Refineries Plants Operations; and Petroleum Product Supply & Distribution to NNPC Budget Performance Report and Federation Crude Oil & Gas Revenue.”


– Sopuruchi Onwuka

%d bloggers like this: