The Nigerian National Petroleum Company (NNPC) Limited has reported that no money has been deposited into the account of the Nigerian government in the past six months, despite the fact that many oil-producing nations around the world are making large profits.
Even though oil prices have recently traded at their highest level in years, this is still the case.
According to NNPC, all N2.38 trillion in revenue from oil sales was invested in projects as it came in.
NNPC provided this information in its presentation to the FAAC, which was released on Tuesday.
The projects included national domestic gas development, cost recovery/cash call, oil search (Frontier Exploration Services), refinery repairs, pipeline security & maintenance costs, and cost recovery.
Others are Nigeria Morocco Pipeline, Renewable Energy Development (RED), Pre-Export Financing, Gas Infrastructure Development and Crude Oil Pre-Export Inspection Agency Expenses (NESS FEES).
NNPC, in its explanation to the committee, noted that of the total gross revenue, N1.59 trillion was spent on fuel subsidy.
It stated that the subsidy payments rose from N210 billion in January 2022 to N319 billion in June 2022.
While the next big spending was on cost recovery/cash call tagged T1/T2 for the six-month period, which stood at N658.97 billion.
Other expenses included Pipeline securities, N12.42 billion, and Oil search, N14.32 billion.
The lack of remittance by NNPC to government accounts has left many states who rely heavily on federal allocation scrambling to survive.
Oil revenue is significant in what the three tiers of government share on monthly basis.
As NNPC struggles, Saudi Arabia and the United Arab Emirates national oil companies have reported bumper profits.
In the United Arab Emirates, the state-owned oil company, Abu Dhabi National Oil Company (ADNOC) reported that its net profit for the first half jumped by 34 percent to $379 million, while revenue increased 13 per cent to $1.27 billion compared to the same period last year.
“Excellent half-year results and successful strategic execution are testaments to the vital role that the company is playing in enabling significant production capacity growth for ADNOC as well as the UAE’s objective to achieve gas self-sufficiency,” Sultan Al Jaber, ADNOC’s managing director, said.
While Saudi oil giant Aramco says its second-quarter net income surged to $48.4 billion, up from $25.5 billion a year earlier.