The Nigerian National Petroleum Company (NNPC) Limited has provided reasons behind the payment of an interim dividend of N123 billion to the Federation Account Allocation Committee (FAAC) for June. 

The state-owned oil giant said the move was to consolidate its post-Petroleum Industry Act (PIA) 2021 status as an income-generating company. 

This disclosure is contained in a statement issued by the Chief Financial Officer of NNPC, Mr. Umar Ajiya, where he noted that the latest development is a departure from the previous years of sleaze and wastage. 

NNPC moving in a positive trajectory  

Ajiya said,

  • This payment is in addition to compliance on payment of royalties and taxes. 
  • “This will set the track for future profitability and global best practices designed to build NNPCL into a world-class oil company in the ranks of  Saudi Aramco, China Petroleum & Chemical Corp., Exxon Mobil Corp., and others. 
  • “The goal of Malam Mele Kyari, the Group Chief Executive Officer (GECO), NNPCL, is to set the nation’s oil company on the path of profitability and sustainable growth. 
  • “Since the transformation of the NNPC from a loss-making organization pre-PIA to a robust profit-making company post-PIA, the company under Kyari has pursued global governance best practices aimed at repositioning the company for greater growth. 
  • “The payment to FAAC clearly shows that the company under the leadership of Kyari is moving in a positive trajectory as enshrined in the PIA.” 

The monies paid are part of the N907.054 billion shared by the Federal Account Allocation Committee (FAAC).

During the FAAC distribution meeting that was chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, the NNPCL remitted N123 billion to the government.

NNPCL paid N81 billion as a monthly interim dividend and N42 billion as a 40% production sharing contract (PSC) profit oil. This is in addition to compliance with the payment of royalties and taxes.

There had been earlier reports that FAAC was set to distribute the sum of N1.9 trillion to the 3 tiers of government following the removal of fuel subsidy and the exchange rate unification with the resultant increased revenue.

The Director, Press and Public Relations, Office of the Accountant General of the Federation, Mr. Bawa Mokwa, had on Thursday stated that the N907.054 billion shared by FAAC comprised distributable statutory revenue of N301.501 billion and Value Added Tax (VAT) revenue of N273.225 billion.

Mokwa stated that the revenue shared also comprised Electronic Money Transfer Levy (EMTL) revenue of N11.436 billion and Exchange Difference revenue of N320.892 billion.

Source: Nairametrics

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