NNPCL Remits N10 Trillion to Federation Account, Reveals Mele Kyari
The Nigerian National Petroleum Company Limited (NNPCL) has reported a significant contribution to the Federation Account, remitting N10 trillion as of September 2024. This announcement was made by the Group Chief Executive Officer of NNPCL, Mele Kyari, during a budget defense session before the Joint Finance Committee of the Senate and House of Representatives in Abuja on Wednesday.
Kyari revealed that in addition to the N10 trillion, the company had also paid N3.5 trillion in dividends after taxes and revenue for the 2024 fiscal year. He highlighted that NNPCL is the only company in Nigeria that publishes 100 percent of its accounts annually, underscoring its commitment to transparency. The company, Kyari noted, is also the highest taxpayer in the country and the largest contributor of royalties and dividends.
Kyari further advocated for a forensic audit to assess the funds spent stabilizing the price of petrol between January and September 2024. “Until October 1, 2024, NNPCL, as mandated by the Petroleum Industry Act (PIA), acted as the supplier of last resort for fuel, which requires a forensic audit to determine how much NNPCL is owed or owes any agency,” he explained.
Addressing the company’s fiscal strategy, Kyari said that future revenue projections for 2025 will be based on an upcoming meeting of NNPCL’s board of directors. He assured that the parameters for the 2025 budget are both realistic and achievable. He also clarified that payments into the Consolidated Revenue Fund are no longer necessary under the current laws governing NNPCL’s operations, as the company now operates under a revised structure, with its contributions primarily coming through dividends and taxes.
On the issue of oil production, Kyari noted that NNPCL no longer has full control over the country’s production levels, as its role is now focused on joint venture arrangements. However, he emphasized that NNPCL had achieved over 90% of its planned production target for 2024. Despite this, Kyari acknowledged challenges related to price adjustments for Premium Motor Spirit (PMS) and delays in remitting taxes and royalties. These delays were attributed to the efforts required to balance PMS price adjustments, which only fully came into effect on October 1, 2024.
In related news, the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, projected a revenue remittance of N997 billion to the Federation Account for the 2025 fiscal year. However, the Joint Committee, chaired by Senator Sani Musa and Hon. James Faleke, raised the NPA’s revenue projection for 2025 from N997 billion to N1.75 trillion. This adjustment was made in an effort to maximize the potential of the NPA’s 56 revenue sources.
The budget defense session emphasized the need for greater transparency and improved revenue generation mechanisms from key state agencies, with both NNPCL and NPA highlighting their significant contributions to the Federation Account and the challenges they face in meeting fiscal goals.
