The cost of subsidising the Premium Motor Spirit (PMS) has reportedly hit N541billion between February and July, 2021.
According to Nigerian National Petroleum Corporation (NNPC) presentation to the Federation Account Allocation Committee (FAAC) meeting in February, NNPC spent N25.37billion, March N60.39billion, April N61.97billion, May N126.33, June N164.33 and N103.28 in July.
The cost of funding the subsidy has taken a toll on the remittance to the the Federation Account for onward distribution to the three tiers of government.
Concerning high exchange rate, other marketers have quit the importation of the product, making the corporation the sole importer.
Due to the toll that the subsidy payment has taken on the finances, the NNPC could not make any remittance to the Federation Account in May this year. In June it reduced the remittance by N126billion, in July N114billion and N170billion in August.
Besides, the document reflected that NNPC remitted N349billion to the three tiers of government from January to last month.
The contribution was an indication of N1.1 trillion shortfall in the period.
The fund was paid in the following order: January N90 billion; February N64billion; March N41billion; April N0; May N38billion; June N47billion and in July N67billion.