Nigerian states may yet face more financial crisis as fuel subsidy hits N672billion in April 2022.
The value shortfall consists of N519bn for estimated April 2022 recovery, in addition to N152bn of March 2022 to arrive at the total
This is contained in the Nigerian National Petroleum Company Limited (NNPC) presentation to the Federation Account Allocation Committee (FAAC) meeting in April 2022.
According to the report, the sum is to be recovered from the April 2022 proceeds due for sharing at the May 2022 FAAC Meeting.
In March, it put the gross revenue for oil and gas at N374.13billion from which N114.6billion was made from export.
Similarly, the value shortfall of N245.8billion was charged for March which comprises outstandings for previous months and part of February 2022 value shortfall.
In March 2022, the NNPC had put the estimated value shortfall at N328billion, consisting of N253billion for February 2022 recovery plus balance of November 2021 Spot Cargo arrears of N75billion which was recovered from the March 2022 proceed shared at the April, 2022 FAAC Meeting.
The value shortfall according to the NNPC is the cost of subsidizing the Petroleum Motor Spirit (PMS) otherwise called petrol.
As a result of continuous subsidy, the Company had repeatedly failed to remit its quota to the Federation Account.
On Wednesday, the FAAC had shared a total of N725.57billion among the Federal, States and Local Governments from which NNPC contributed nothing.
Meanwhile, State governments have continued to lament the huge subsidy deduction which has affected their financial status.
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