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The Nigerian National Petroleum Company Limited (NNPCL) has announced a significant financial milestone, reporting a remittance of N10 trillion to the Federation Account as of September 2024. This announcement was made by the Group Chief Executive Officer, Mele Kyari, during a budget defense session before the National Assembly’s Joint Committee on Finance in Abuja. Kyari emphasized the company’s commitment to transparency and fiscal responsibility, highlighting its status as the highest taxpayer in Nigeria.
Key Takeaways
- NNPCL remitted N10 trillion to the Federation Account by September 2024.
- The company also paid N3.5 trillion in dividends after taxes for the 2024 fiscal year.
- NNPCL claims to be the only Nigerian company that publishes 100% of its accounts annually.
- A forensic audit is requested to assess funds spent on fuel price stabilization from January to September 2024.
Financial Performance Overview
During the budget defense, Kyari detailed the financial performance of NNPCL, stating that the N10 trillion remittance was in addition to N3.5 trillion paid in dividends after taxes. He noted that the company operates under a new structure where contributions come through dividends and taxes rather than direct remittances to the Consolidated Revenue Fund.
Kyari remarked, “Our transactional account is very transparent, which is published on a yearly basis, making NNPCL the only company in Nigeria noted for that.”
Transparency and Accountability
NNPCL has positioned itself as a champion of transparency in the Nigerian oil sector. Kyari reiterated that the company is the highest taxpayer and the largest payer of royalties and dividends in the country. He called for a forensic audit to clarify the financial dealings related to fuel price stabilization, stating, “Until October 1, 2024, NNPCL acted as the supplier of last resort on fuel supply.”
Production Dynamics
Kyari also addressed the production dynamics of NNPCL, indicating that the company no longer has full control over oil production in Nigeria. Instead, it operates through joint venture arrangements, accounting only for its production contributions. He reported that NNPCL achieved over 90% of its planned production target for 2024, despite facing challenges with price adjustments for Premium Motor Spirit (PMS).
Future Projections
Looking ahead, Kyari mentioned that revenue projections for 2025 would be determined after a board meeting scheduled in two weeks. He expressed confidence that the parameters for the 2025 budget are realistic and achievable. The Managing Director of the Nigerian Ports Authority (NPA) also presented revenue projections, with the committee increasing the NPA’s target from N997 billion to N1.75 trillion, citing untapped opportunities across its revenue streams.
In conclusion, NNPCL’s substantial remittance to the Federation Account marks a significant achievement in the company’s financial performance and commitment to transparency, setting a precedent for accountability in Nigeria’s oil sector.
Sources
- NNPCL: We remitted N10trn into federation account – Daily Trust, Daily Trust.
- NNPCL claims transparency champion, remits N10 trn in 2024 – OrderPaper, OrderPaper.
- NNPCL remitted N10tn in 2024 – Kyari, Punch Newspapers.
- NNPCL remits N10trn by Sept 2024 — Kyari – Daily Post Nigeria, Daily Post Nigeria.
- NNPCL remits N10trn into Federation Account in Sept 2024 | Royal News, Royal News.
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