The Nigerian National Petroleum Company Limited (NNPCL) has announced that it remitted N10 trillion to the Federation Account as of September 2024.
This was revealed by NNPCL’s Group Chief Executive Officer, Mele Kyari, during a budget defense session before the Joint Committee of the Senate and House of Representatives in Abuja on Wednesday.
Kyari explained that the N10 trillion remittance was in addition to N3.5 trillion in dividends after taxes and revenue for the 2024 fiscal year.
He also clarified that payments into the Consolidated Revenue Fund were no longer required, as the company now operates under a new structure.
“We now function under a new structure, with our contributions coming in the form of dividends and taxes instead of direct remittances,” he stated.
Further discussing NNPCL’s operational changes, Kyari noted that the company no longer has full control over oil production in Nigeria.
He said, “Until October 1, 2024, NNPCL, as mandated by the Petroleum Industry Act, acted as the supplier of last resort on fuel supply, which requires a forensic audit to know how much NNPCL is being owed or owing any agency.”
Kyari also emphasized NNPCL’s transparency, saying, “Our transactional account is very transparent and is published on a yearly basis, making NNPCL the only company in Nigeria noted for that and also the highest taxpayer in the country, as well as the highest payer of royalty and dividends to shareholders as a commercial national oil company.”
Despite the challenges, Kyari highlighted that the company had met over 90% of its planned production target for 2024.
However, he acknowledged difficulties with price adjustments for Premium Motor Spirit (PMS) and delays in the remittance of taxes and royalties.
“These delays were attributed to efforts to balance PMS price adjustments, which only took full effect on October 1, 2024,” he added.
