Despite claims to the contrary, the Nigerian National Petroleum Corporation (NNPC) has reported to the Federation Account Allocation Committee (FAAC) that it spent N623.16 billion on under recovery otherwise known as subsidy from January to November, 2018.
The report to FAAC was made at the last meeting in Abuja where revenue generating agencies gave account of their performances in the year. The NNPC in its report dated 19th December, 2018 revealed that it also has an arrears of N67.23 billion for deductions made from FAAC.
The report said there is a total FAAC deduction of N676.49 billion comprising of N599.74 billion as under recovery for Direct Sales Direct Purchase (DSDP) arrangement and the sum of N23.43 billion as under recovered from it’s refineries.
From the document it shows that the Nigerian National Petroleum Corporation (NNPC) is currently subsidising Premium Motor Spirit, popularly known as petrol through its under recovery arrangements.
Source: The Nation