Tuesday, June 07, 2016 9:49AM /FBNQuest Research
The NNPC’s accounts for March show a group operating deficit of N18.9bn (US$96m) vs N24.2bn the previous month. Group revenue picked up slightly to N107.8bn (US$547m) from N104.8bn, but slumped to just N49m (US$0.2m) from N672m for the Nigerian Petroleum Development Company.
The corporation explains in its footnotes that the company’s entire monthly revenue of about N20bn from crude sales, as in February, was lost due to sabotage of the Forcados export line. It has launched its 20Fixes Project, one of which is to reduce the monthly deficit from N30bn in 2015 to N3bn this year.
The budget figures in the accounts for March were still necessarily based on last year’s budget.
Over the 12 months to March, crude oil and gas dollar accruals amounted to US$3.98bn. This sum was paid to meet part of the corporation’s cash call obligations to its joint venture partners, leaving zero for its dollar dues to the federation account.
Total group spending in March was N127bn (US$645m), compared with N129bn the previous month. The trend has been downwards since August.
Spending by central headquarters (CHQ) for the month rose slightly to N8.0bn from N6.4bn
The accounts exclude below-the-line items. Disclosure has, however, dramatically improved. Achievements to date include the new direct-sale-direct-purchase arrangement. This replaces the offshore processing/crude swaps, and accounted for 55% of domestic crude supply in February.