PUNCH
The Nigerian National Petroleum Company Limited has confirmed that the Federal Government incurred a debt of N5.1tn in under-recovery and energy security expenses for fuel importation in 2023.
It also stated that a total sum of N9.38tn, described as receivables, was incurred on behalf of the Federal Government in 2023 for fuel imports.
In its financial statement for the fiscal year ending December 31, 2023, the national oil firm explained that N6.25tn was accrued under domestic crude oil supply and N3.14tn under other receivables.
Receivables, also regarded as accounts receivable, are debts owed to a firm by its customers for goods or services used or delivered but not yet paid for.
The amount (N9.38tn) was N7.2tn or 76.7 per cent more than the N2.18tn expenses incurred in the preceding year of 2022.
“Receivables from the Federation relate to expenses incurred on behalf of the Federation by the Group,” the report noted.
On the N5.1tn in under-recovery and energy security expenses, the firm stated that the cumulative amount spent was used as expenses from crude oil supply for domestic use and other receivables on behalf of the federation after it instructed the company not to sell its Premium Motor Spirit, popularly known as petrol, above a certain regulated price.
This total cost is made up of January to May 2023 under-recovery of N3.3tn and August-December 2023 energy security expense of N1.8tn.
The new term (under-recovery), as indicated in the financial statement of the NNPC for the fiscal year ending December 31, 2023, is a technical term to conceal a secret, a petroleum engineer and oil and gas analyst, Bala Zakka, stated on Tuesday.
