The Nigerian National Petroleum Corporation (NNPC) on Tuesday, May 21, said it remitted N1.26 trillion to the federation account in 2018.
Daily Trust reports that the corporation said the money remitted surpassed the projected N1.22 trillion in the 2018 budget. Speaking during a presentation to the House of Representatives Ad Hoc Committee on the Investigation of the Non-Remittances of Funds to the Federation Account by the corporation between July 2017 and December 2018, the managing director of NNPC Capital, Godwin Okonkwo, said the money is in excess of N41 billion.
Okonkwo who represented the NNPC’s managing director, Maikanti Baru, said that though 2.3million barrels per day (mbpd) was proposed in the 2018 budget, national daily production for the period under review oscillated between 1.9mbpd to 1.89mbpd.
He also listed the two sources of inflows into the Federation Account from the NNPC as equity crude oil sales less cost of recovery from the Joint Venture cash call arrears and domestic crude less cost recovery. Okonkwo said the JV cash call arrears were being efficiently managed now to ensure steady inflows to the Federation Account.
“The current management of NNPC ensures that it contributes to the cost of the production of crude oil and gas in the upstream sector to avoid a repeat of the mistakes of the past. “If we had made cash call payments in the past, the arrears that we are liquidating now would not have arisen. The current situation creates a win-win scenario for the country. The NNPC is strategically saving for the rainy day to make a better future for all of us by liquidating the arrears,” Okonkwo said.
The minister spoke in Riyadh, Saudi Arabia on Wednesday, April 24, when he met with the minister of energy industry and mineral resources of the Kingdom of Saudi Arabia, Khalid Al Falih. Kachikwu said the country needs to make an urgent decision on what it will go with as there were several options on the table.