“NNPCL transfers ₦123bn to the federation account following the subsidy burden.”

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In the aftermath of the subsidy burden, NNPCL has successfully remitted ₦123bn to the federation account. Notably, the company has fulfilled its tax and royalty obligations within the specified timeframe.

Furthermore, in accordance with the Petroleum Industry Act of 2021, the Nigerian National Petroleum Company Limited (NNPCL) has initiated dividend payments into the federation account. As part of the ₦907bn shared by the Federation Account Allocation Committee (FAAC) to the government on July 20, 2023, NNPCL’s remittance of ₦123bn comprises deductions of interim dividend and PSC (Production Sharing Contract) profit oil.

This significant development follows President Bola Tinubu’s recent decision to alleviate NNPCL from the burden of fuel subsidy payments, which had been impeding its ability to remit proceeds to the government account.

The Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari, had earlier highlighted that the federal government owed the company ₦2.8 trillion as fuel subsidy repayment. Commending Tinubu’s move to remove the subsidy, the GCEO emphasized that this financial burden had been unsustainable and hindered the company’s capacity to allocate funds for its primary operations.

In a recent FAAC distribution meeting chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, the remittance from NNPCL was officially confirmed. A breakdown of the ₦123bn payment revealed that ₦81bn constituted a monthly interim dividend, while ₦42bn was allocated as 40 per cent PSC profit oil. Additionally, the company has consistently complied with the payment of royalties and taxes.

During the same FAAC meeting held in Abuja, a total distributable revenue of ₦907.054bn was shared among the three tiers of government. This amount included distributable statutory revenue of ₦301.501bn, distributable Value Added Tax (VAT) revenue of ₦273.225bn, Electronic Money Transfer Levy (EMTL) revenue of ₦11.436bn, and Exchange Difference revenue of ₦320.892bn.

It’s worth noting that in June 2023, the total deductions for the cost of collection amounted to ₦73.235bn, and the total deductions for savings, transfers, and refunds were ₦979.078bn. The balance in the Excess Crude Account (ECA) stood at $473,754.57.

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