The Nigerian National Petroleum Company Limited (NNPC) has announced that it would deduct N242.53bn as subsidy on Premium Motor Spirit (PMS), known popularly as petrol, from the Federation Account this month.

THE VENT REPUBLIC reports that the oil firm while describing the proposed subsidy deduction as value shortfall, stated that the fund would be recovered from February 2022 proceeds that would be ripe for sharing in the March 2022 Federation Account Allocation Committee meeting.

In its latest presentation to the FAAC meeting, the NNPC said:

 “The December 2021 value shortfall recovery on the importation of PMS amounted to N210.38bn.

“The recovery consists of December 2021 value shortfall of N176.48bn plus the outstanding value shortfall recovery of N33.9bn accrued over the 2021 year. The November 2021 spot arrears of N98.81bn is also outstanding.

“The estimated value shortfall of N242.53bn (consisting of N143.72bn for January 2022 recovery plus November spot arrears of N98.81bn) is to be recovered from February 2022 proceed due for sharing at the March 2022 FAAC meeting.”

THE VENT REPUBLIC recalls that the NNPC failed to remit money to the FAAC in February this year as a result of its huge fuel subsidy spending and subsequent deduction from the Federation Account.

The Nigerian Governors Forum (NGF) in reaction to the development had berated the NNPC for the non-remittance at last month’s FAAC meeting.