Why We Paid N123 Billion Naira Interim Dividend to FAAC – NNPCL
The Nigerian National Petroleum Company Limited (NNPCL) has explained the reasons for paying an interim dividend of N123 billion to the Federation Accounts Allocation Committee (FAAC) for the month of June.
The News Agency of Nigeria (NAN) reports that the FAAC shared N907 billion between the three levels of government on Thursday.
Of the shared money, NNPCL paid N81 billion as a monthly interim dividend and N42 billion as the 40% profit of the Oil Production Sharing Contract (PSC) totaling N123 billion.
NNPCL Chief Financial Officer Umar Ajiya said in a statement that the move is aimed at cementing its post-Petroleum Industry Act (PIA) 2021 status as a revenue-generating business.
“This payment is in addition to compliance with the payment of royalties and taxes,” he said.
According to Mr. Ajiya, the latest development is a change from previous years of sleaze and waste.
"This will pave the way for future profitability and global best practices designed to make NNPCL a world-class petroleum company among the ranks of Saudi Aramco, China Petroleum & Chemical Corp., Exxon Mobil Corp. and others.
READ ALSO:“Malam Mele Kyari, Group CEO (GECO), NNPCL, aims to put the national oil company on the path to profitability and sustainable growth.
"Since NNPC's transformation from a loss-making organization before the PIA to a strong and profitable business after the PIA, the company under Kyari has pursued global governance best practices aimed at repositioning the company for greater growth.
"The payment to FAAC clearly demonstrates that the business under Kyari's leadership is on a positive trajectory, as stipulated in the PIA."
On Thursday, Bawa Mokwa, Director, Press and Public Relations, Office of the Accountant General of the Federation (OAGF) said the 907.054 billion naira shared by FAAC comprised distributable statutory income of 301.501 billion naira and Value Added Tax (VAT) income of 273.225 billion naira.
Mr. Mokwa said the shared revenue also included electronic funds transfer levy (EMTL) revenue of N11.436 billion and foreign exchange difference revenue of N320.892 billion.
He said the total deductions in June for the cost of collection was N73.235 billion and the total deductions for savings, transfers and refunds was N979.078 billion, noting that the Excess Crude Account (ECA) balance was $473,754.57 million.
Also at the FAAC meeting chaired by the Accountant General of the Federation, Oluwatoyin Madein, he said that out of the total distributable income of N907.054 billion; the federal government received N345.564 billion.
In the same vein, state governments received N295.948 billion and local government councils received N218.064 billion.
A total of 47.478 billion naira was shared among the affected states as 13% diversion revenue.
A gross statutory income of N1,152.921 billion was received for the month of June 2023, which was higher than the sum of N701.787 million received in the month of May of N451.134 million.
Of the distributable statutory income of N301.501 billion, the Federal Government received N146.710 billion; State Governments, N74.413 billion; And...
The Nigerian National Petroleum Company Limited (NNPCL) has explained the reasons for paying an interim dividend of N123 billion to the Federation Accounts Allocation Committee (FAAC) for the month of June.
The News Agency of Nigeria (NAN) reports that the FAAC shared N907 billion between the three levels of government on Thursday.
Of the shared money, NNPCL paid N81 billion as a monthly interim dividend and N42 billion as the 40% profit of the Oil Production Sharing Contract (PSC) totaling N123 billion.
NNPCL Chief Financial Officer Umar Ajiya said in a statement that the move is aimed at cementing its post-Petroleum Industry Act (PIA) 2021 status as a revenue-generating business.
“This payment is in addition to compliance with the payment of royalties and taxes,” he said.
According to Mr. Ajiya, the latest development is a change from previous years of sleaze and waste.
"This will pave the way for future profitability and global best practices designed to make NNPCL a world-class petroleum company among the ranks of Saudi Aramco, China Petroleum & Chemical Corp., Exxon Mobil Corp. and others.
READ ALSO:“Malam Mele Kyari, Group CEO (GECO), NNPCL, aims to put the national oil company on the path to profitability and sustainable growth.
"Since NNPC's transformation from a loss-making organization before the PIA to a strong and profitable business after the PIA, the company under Kyari has pursued global governance best practices aimed at repositioning the company for greater growth.
"The payment to FAAC clearly demonstrates that the business under Kyari's leadership is on a positive trajectory, as stipulated in the PIA."
On Thursday, Bawa Mokwa, Director, Press and Public Relations, Office of the Accountant General of the Federation (OAGF) said the 907.054 billion naira shared by FAAC comprised distributable statutory income of 301.501 billion naira and Value Added Tax (VAT) income of 273.225 billion naira.
Mr. Mokwa said the shared revenue also included electronic funds transfer levy (EMTL) revenue of N11.436 billion and foreign exchange difference revenue of N320.892 billion.
He said the total deductions in June for the cost of collection was N73.235 billion and the total deductions for savings, transfers and refunds was N979.078 billion, noting that the Excess Crude Account (ECA) balance was $473,754.57 million.
Also at the FAAC meeting chaired by the Accountant General of the Federation, Oluwatoyin Madein, he said that out of the total distributable income of N907.054 billion; the federal government received N345.564 billion.
In the same vein, state governments received N295.948 billion and local government councils received N218.064 billion.
A total of 47.478 billion naira was shared among the affected states as 13% diversion revenue.
A gross statutory income of N1,152.921 billion was received for the month of June 2023, which was higher than the sum of N701.787 million received in the month of May of N451.134 million.
Of the distributable statutory income of N301.501 billion, the Federal Government received N146.710 billion; State Governments, N74.413 billion; And...
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