- The Nigerian National Petroleum Company Limited (NNPCL) paid an interim dividend of N123 billion to the Federation Account Allocation Committee (FAAC) in June
- The payment was made to consolidate the company’s post-Petroleum Industry Act (PIA) 2021 status as an income-generating company
- The payment is in addition to compliance on payment of royalties and taxes
The Nigerian National Petroleum Company Limited (NNPCL) has explained why it paid an interim dividend of N123 billion to the Federation Account Allocation Committee (FAAC) in June.
According to the News Agency of Nigeria (NAN), FAAC distributed N907 billion to the three levels of government on Thursday.
NNPCL contributed N81 billion as a monthly interim dividend and N42 billion as a 40% oil Production Sharing Contract (PSC) profit, totalling N123 billion.
According to NNPCL’s chief financial officer, Umar Ajiya, the move was made to consolidate the company’s post-Petroleum Industry Act (PIA) 2021 status as an income-generating company.
This payment is in addition to compliance on payment of royalties and taxes, he said.
According to Ajiya, the latest development departs from previous years of sleaze and wastage.
This will set the track for future profitability and global best practices designed to build the NNPCL into a world-class oil company in the ranks of Saudi Aramco, China Petroleum and Chemical Corp., Exxon Mobil Corp and others.
The goal of Malam Mele Kyari, the Group Chief Executive Officer (GECO), NNPCL, is to set the country’s oil company on the path of profitability and sustainable growth.
Since the transformation of the NNPC from a loss-making organisation 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.
On Thursday, Bawa Mokwa, Director, Press and Public Relations, Office of the Accountant-General of the Federation (OAGF), stated that the N907.054bn shared by the FAAC included N301.501bn in distributable statutory revenue and N273.225bn in VAT revenue.