The Nigeria National Petroleum Corporation over-supplied gasoline to storage tanks across the country by 3.50bn liters between July 2018 when it extended its Direct Sale Direct Purchase contract and February 2020 when it stopped reporting the extension.
The different channels of revenue withholding enforced by the NNPC has contributed to the Central Banks policy of plugging the cash shortage by illegally advancing the executive arm of government more than five per cent of its budgeted earnings. This left the corporation with a slight excess of 460.77m liters, a little above 10 days supply. The firm’s daily importation/refining averaged for this period was 45.54m liters and its distribution averaged 44.69m liters, living the corporation with a daily average of just 843,898 liters.
This extension, and the losses attached to selling the petrol purchased at a subsidised rate, were charged to the National Fuel Support Fund . This fund was capitalized with $1.05bn from dividend remitted to the Federation account by Nigeria Liquefied Natural gas .