By Daniel Edu
The Nigerian National Petroleum Company Limited (NNPCL) clarified on Thursday that the Federal Government’s outstanding N1.3tn debt to the company would not affect the payment of dividends to the government.
Earlier in June, the national oil company had announced its expectation of a refund of approximately N1.3tn from the Federation Account, citing it as a debt owed by the Federal Government. This revelation came as the inter-agency committee, established by President Bola Tinubu, was set to address the long-standing debt dispute.
The Federal Government had accused NNPCL of being indebted to the tune of around N2.8tn, while the oil company contended that the government should first repay nearly N4.1tn, representing outstanding claims for subsidy payments on petroleum product imports, supplies, and distribution on behalf of the government.
A senior official of the company had recently stated in Abuja during the committee’s efforts to resolve the matter, “The Federation owes NNPC almost N4.1tn, and NNPC owes about N2.8tn to the Federal Government. So, they should actually give us a cheque for the debt of N1.3tn they owe NNPC Limited.”
Despite the Federal Government’s debt to NNPCL, the company made a recent announcement that it paid a dividend and Production Sharing Contract profit of approximately N123bn to the government in June.
NNPCL’s Chief Financial Officer, Umar Ajiya, emphasized, “NNPC has remitted N123bn (N81bn as monthly interim dividend and N42bn as 40 per cent PSC profit oil) in addition to compliance on payment of royalties and taxes. This clearly shows that the company under the leadership of Mallam Mele Kyari is moving in a positive trajectory as enshrined in the PIA (Petroleum Industry Act).”
When questioned about whether NNPCL had initiated deductions from the N1.3tn owed by the Federal Government, considering the recent dividend payment, the company responded negatively. The Chief Corporate Communications Officer, NNPCL, Garba-Deen Muhammad, explained that dividend payments are based on projected profits and are unrelated to the outstanding N1.3tn owed to NNPCL.
In conclusion, the NNPCL is affirming that despite the substantial debt owed by the Federal Government, the payment of dividends remains unaffected, reflecting its commitment to financial transparency and adherence to regulations outlined in the Petroleum Industry Act.
