NNPCL: Why we paid N123bn interim dividend to FAAC

The Nigerian National Petroleum Company Limited (NNPCL) has given reasons behind the payment of an interim dividend of N123 billion to the Federation Account Allocation Committee (FAAC) for the month of June 2023

The FAAC had, on Thursday, shared N907.054 billion among the three tiers of government.

From the money shared, NNPCL contributed N81 billion as a monthly interim dividend and N42 billion as 40 per cent oil Production Sharing Contract (PSC) profit totaling N123 billion.

Speaking on the development, the NNPCL Chief Financial Officer, Umar Ajiya, in a statement on Saturday, said the move was to consolidate its post Petroleum Industry Act (PIA) 2021 status as an income-generating company.

READ ALSO: FAAC shares N907.054bn to FG, states, LGs for June

“This payment is in addition to compliance on payment of royalties and taxes,” he said.

Ajiya stated that the latest development was a departure from previous years of sleaze and wastage.

He added: “This will set the track for future profitability and global best practices designed to build NNPCL into a world class oil company in the ranks of Saudi Aramco, China Petroleum & Chemical Corp., Exxon Mobil Corp., and others.

“The goal of Malam Mele Kyari, the Group Chief Executive Officer (GECO), NNPCL, is to set the nation’s oil company on the path of profitability and sustainable growth.

“Since the transformation of the NNPC from a loss-making organisation pre-PIA to a robust profit-making company post-PIA, the company under Kyari has pursued global governance best practices aimed at repositioning the company for greater growth.

“The payment to FAAC clearly shows that the company under the leadership of Kyari is moving in a positive trajectory as enshrined in the PIA.”

The Star