After Fuel Subsidy Regime Exit, NNPCL Remits N123bn Into Federation Account

In line with the provisions of the Petroleum Industry Act 2021, the Nigerian National Petroleum Company Limited (NNPCL) has commenced the payment of dividend into the federation account.

The NNPC Limited on Thursday begun the payment of interim dividend and PSC profit oil as part of the N907bn shared by the Federation Account Allocation Committee (FAAC) to the three tiers of government.

The remittance is coming barely two months after the NNPC exited the fuel subsidy shackle following the removal by President Bola Tinubu.

During the FAAC distribution,which was chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, the NNPCL remitted N123bn into the coffers of government.

A breakdown of the N123bn showed that the National Oil Company paid N81bn as a monthly interim dividend and N42bn as 40 per cent PSC profit oil.

This is in addition to compliance on payment of royalties and taxes.

The payment of dividend by the NNPC Limited clearly shows that the company under the leadership of the Group Chief Executive Officer, Mallam Mele Kyari is moving in a positive trajectory as enshrined in the PIA.

Since he assumed office, Kyari has pursued his Transparency, Accountability and Performance Excellence (TAPE) agenda, a five-step strategic roadmap for NNPC’s attainment of efficiency and global excellence.

Kyari, during the inauguration, had said pursuing TAPE was the only way to turn around the corporation and make it competitive.

Under the roadmap, the Transparency component of the agenda was aimed at maintaining positive image, share values of integrity and transparency to all stakeholders, while the Accountability segment of the campaign is to assure compliance with business ethics, policies, regulations and accountability to all stakeholders.

In terms of the two-prong item of Performance Excellence, Kyari had said the idea was to entrench a high level of efficiency anchored on efficient implementation of business processes which would also emplace an appropriate reward system for exceptional performance among the workforce.

During the FAAC meeting held in Abuja on Thursday, N907.054bn total distributable revenue was shared to the three tiers of government

This comprised distributable statutory revenue of N301.501bn, distributable Value Added Tax (VAT) revenue of N273.225bn, Electronic Money Transfer Levy (EMTL) revenue of N11.436bn and Exchange Difference revenue of N320.892bn.

In June 2023, the total deductions for cost of collection was N73.235bn and total deductions for savings, transfers and refunds was N979.078bn.

The balance in the Excess Crude Account (ECA) was $473,754.57

The communiqué stated that from the total distributable revenue of N907.054bn; the Federal Government received N345.564bn, the State Governments received N295.948bn and the Local Government Councils received N218.064bn.i A total sum of N47.478bn was shared to the relevant States as 13% derivation revenue.

It stated that gross statutory revenue of N1.152trn was received for the month of June 2023. This was higher than the sum of N701.787bn received in the previous month by N451.134bn.

From the N301.501bn distributable statutory revenue, the Federal Government received N146.710bn, the State Governments received N74.413bn and the Local Government Councils received N57.370bn. The sum of N23.008bn was shared to the relevant States as 13 per cent derivation revenue.

For the month of June 2023, the gross revenue available from the Value Added Tax (VAT) was N293.411bn. This was higher than the N270.197bn available in the month of May 2023 by N23.214 billion.

The Federal Government received N40.984bn, the State Governments received N136.613bn and the Local Government Councils receivedi N95.629bn from the N273.225bn distributable Value Added Tax (VAT) revenue.

The N11.436bn Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government receivedi N1.715bn, the State Governments received N5.718bn and the Local Government Councils received N4.003bn.

From the N320.892i billion Exchange Difference revenue, the Federal Government received N156.155bn, the State Governments received N79.204bn, the Local Governmentk Councils received N61.063bn and the sum of N24.470bn was shared to the relevant States as 13 percent mineral revenue.

According to the communiqué, in the month of June 2023, Companies Income Tax (CIT) recorded tremendous increase.