By Gloria Ikibah
The Nigerian National Petroleum Company Limited (NNPCL) has announced a total remittance of N10 trillion to the Federation Account by September 2024, alongside N3.5 trillion in dividends after taxes for the 2024 fiscal year.
The Group Chief Executive Officer, Mele Kyari, disclosed this during a budget defense session before the Joint Finance Committee of the Senate and House of Representatives in Abuja on Wednesday.
Kyari emphasised the transparency of NNPCL, that it is the only organization in Nigeria that publishes 100 percent of its financial accounts annually, and highlighted the its role as the Nigeria’s highest taxpayer and its significant contributions through royalties and dividends.
He also called for a forensic audit to evaluate funds spent on stabilizing petrol prices from January to September 2024. He noted that, until October 1, 2024, NNPCL, as mandated by the Petroleum Industry Act (PIA), acted as the supplier of last resort for fuel.
“Our transactional accounts are fully transparent and published annually. NNPCL remains the highest taxpayer, royalty payer, and dividend contributor in the country,” Kyari stated.
On revenue projections for 2025, Kyari revealed that final figures would be determined after an upcoming board of directors’ meeting. He assured the committee that the company’s parameters for the 2025 budget are realistic.
He explained that NNPCL no longer makes direct payments into the Consolidated Revenue Fund due to its restructured operational framework under the PIA. Instead, its contributions now come through dividends and taxes.
Addressing production dynamics, Kyari explained that NNPCL operates within joint venture arrangements and can only account for its share of production. He reported that the company achieved over 90% of its 2024 production targets despite challenges related to Premium Motor Spirit (PMS) pricing and delayed tax and royalty remittances.
Meanwhile, the Nigerian Ports Authority (NPA) revealed a remittance of N753 billion for 2024 and projected N997 billion for 2025. However, the Joint Finance Committee, chaired by Senator Sani Musa and Hon. James Faleke, revised the NPA’s revenue projection to N1.75 trillion to optimize income from the agency’s 56 revenue streams.
This revision, the committee noted, reflects a commitment to maximizing Nigeria’s revenue-generating potential.