By Mercy Aikoye
The Nigerian National Petroleum Company Limited (NNPCL) has announced a significant remittance of N10 trillion to the Federation Account as of September 2024. This substantial contribution was made alongside N3.5 trillion in dividends after taxes and revenue for the 2024 fiscal year. Mele Kyari, the Group Chief Executive Officer of NNPCL, disclosed this information during a budget defense session before the Joint Finance Committee of the Senate and House of Representatives in Abuja.
Kyari emphasized that NNPCL is committed to transparency, publishing 100% of its accounts on a yearly basis. He also highlighted the company’s status as the highest taxpayer in Nigeria, as well as the highest payer of royalty and dividends. This commitment to transparency and accountability is crucial for a company of NNPCL’s stature.
During the budget defense session, Kyari called for a forensic audit to be conducted on the funds spent for stabilizing petrol prices from January to September 2024. This audit is necessary to determine how much NNPCL is owed or owes to any agency. Kyari explained that NNPCL acted as the supply of last resort on fuel supply, as mandated by the Petroleum Industry Act (PIA), until October 1, 2024.
The NNPCL Group Chief Executive also discussed the company’s revenue projection for 2025, stating that it will be made after the meeting of the board of directors in two weeks’ time. He assured that the parameters for the 2025 budget are realistic and achievable. Kyari also explained that payments into the Consolidated Revenue Fund are no longer necessary due to existing laws governing NNPCL’s operations.
NNPCL’s production dynamics have undergone significant changes, with the company no longer having full control over oil production in Nigeria. Instead, its role is limited to joint venture arrangements, and it can only account for its own production contributions. Despite this, NNPCL achieved over 90% of its planned production target for 2024.
However, Kyari acknowledged challenges in price adjustments for Premium Motor Spirit (PMS) and delays in remitting taxes and royalties. These delays were attributed to efforts to balance PMS price adjustments, which only took full effect on October 1, 2024.
In a related development, the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, projected a revenue remittance of N997 billion to the Federation Account for 2025. However, the Joint Committee increased this projection to N1.75 trillion, aiming to maximize the 56 revenue sources of the NPA.
The increased revenue projection is a positive development, as it demonstrates the government’s commitment to maximizing revenue generation. With NNPCL’s significant remittance and the NPA’s increased revenue projection, Nigeria’s economy is poised for growth and development.
