NNPCL explains why it is paying N123 billion interim dividend to FAAC

The Nigerian National Petroleum Company Limited (NNPCL) has explained why it is paying a N123 billion interim dividend to the Federation Account Allocation Committee (FAAC) for June.

According to NAN, the NNPCL Chief Financial Officer, Mr Umar Ajiya, recently announced this in a statement.

According to Obasanjonews24, FAAC distributed N907 billion to the three levels of government on Thursday.

As a result, NNPCL donated N81 billion as a monthly interim dividend and N42 billion as a 40% oil Production Sharing Contract (PSC) profit, for a total contribution of N123 billion.

According to Ajiya, the decision was made to solidify the company’s post-Petroleum Industry Act (PIA) 2021 status as an income-generating corporation.

Naira falls again against the US dollar, trading at N777.82.

“This payment is in addition to compliance with royalties and taxes,” he explained.

The latest trend, according to Ajiya, differs from prior years of corruption and waste.

“This will lay the groundwork for future profitability and global best practises that will propel NNPCL into the ranks of Saudi Aramco, China Petroleum & Chemical Corp., Exxon Mobil Corp., and others,” he said.

Due to fuel subsidy elimination payments, the NNPCL announced a zero remittance to FAAC for the previous months.