The Nigerian National Petroleum Company (NNPC) Limited says remitting an interim dividend of N123 billion to the Federation Account Allocation Committee (FAAC) for June 2023 shows a positive trajectory. Umar Ajiya, NNPC’s chief financial officer (CFO), said the move was to consolidate its post-Petroleum Industry Act (PIA) status as an income-generating company.
FAAC shared N907.05 billion among the three tiers of government in June. The total revenue shared comprised distributable statutory revenue of N301.5 billion, distributable value-added tax (VAT) of N273.23 billion, and electronic money transfer levy (EMTL) income of N11.44 billion. Of the shared revenue, Ajiya said NNPC made contributions totalling N123 billion, including N81 billion as a monthly interim dividend and N42 billion as profit from 40 percent oil production sharing contract (PSC). “This payment is in addition to compliance on payment of royalties and taxes,” he said.
The latest development, Ajiya said, marks a change from previous years of sleaze and wastage. “This will set the track for future profitability and global best practices designed to build NNPC into a world class oil company in the ranks of Saudi Aramco, China Petroleum and Chemical Corporation, Exxon Mobil Corporation and others,” he said. “The goal of Mele Kyari, the group chief executive officer (GECO), NNPC, 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 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.”