The Nigerian National Petroleum Corporation (NNPC) says the zero revenue projection for May 2021 as contained in the letter to the Accountant General of the Federation, pertains only to the federation revenue stream being managed by the Corporation and not a reflection of the overall financial performance of the Corporation.
The Group General Manager, Public Affairs Division of the NNPC, Dr. Kennie Obateru, in a press release stated that the Corporation’s financial trajectory was positive, despite its revenue projection, adding that this clarification became necessary in the light of media reports insinuating that the Corporation was in financial straits.
The Corporation pledged to continue to pursue and observe its cost optimization process with a view to maximizing remittances to the Federation Account, noting that the NNPC is conscious of its role and was doing everything possible to shore up its revenues and support the federation at all times.
It would be recalled that NNPC, in a letter to the Accountant General of the Federation entitled “Re: Impact of Hike in Crude Oil Prices on the Deregulated Downstream Sector” projected that it would deduct the sum of N112bn from Oil and Gas proceeds for the month of April 2021 to ensure continuous supply of petroleum products to the country and guarantee energy security.
This has fuelled reports of impending revenue shortfalls with dire consequences for the various tiers of government.