NNPC says zero revenue not a reflection of overall financial performance

By our reporter| The Nigerian National Petroleum Corporation (NNPC) on Friday explained that the zero revenue projection for May pertains only to the federation revenue stream it manages and not a reflection of its overall financial performance.

Kennie Obateru, the group general manager of NNPC public affairs division, who made the disclosure in a statement, said the clarification became necessary to assure citizens that the NNPC remains conscious of its role and was doing everything possible to shore up revenues and support the federation at all times.

“The shortfall will be remedied by the corporation as it relates only to the Federation revenue stream being managed by the NNPC and does not reflect the overall financial performance of the Corporation,” the statement read.

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“The NNPC remains in positive financial trajectory for the period in question.”

It will be recalled that the NNPC, in a letter to the accountant-general of the federation earlier in the week, disclosed that its projected monthly remittance to the federation accounts allocation committee (FAAC) for May will be zero.

In the letter, NNPC said N111.96 billion will be deducted from April 2021 oil and gas proceeds — due to the federation in May — noting that the deduction is necessary to ensure the continuous supply of petroleum products to the nation and guarantee energy security.

The corporation in the statement on Friday noted that the letter has fueled reports insinuating that it was in financial straits as well as claims of impending revenue shortfalls with dire consequences for the various tiers of government.

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The NNPC, however, pledged to continue to pursue and observe its cost optimization process with a view to maximizing remittances to the federation account.

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