The Nigerian National Petroleum Company Limited has begin payments of dividends into the federation account in accordance with the Petroleum Industry Act 2021’s requirements.
As part of the N907 billion distributed to the three levels of government by the Federation Account Allocation Committee, the NNPC Limited started paying interim dividends and PSC profit oil on Thursday.
The payment is made just two months after President Bola Tinubu’s release of the NNPC from the fuel subsidy shackle.
The NNPCL transferred N123 billion into the government’s coffers during the FAAC distribution, which was presided over by Dr. Oluwatoyin Madein, the Accountant General of the Federation.
The National Oil Company paid N81 billion as a monthly interim dividend and N42 billion as 40% PSC profit oil, according to a breakdown of the N123 billion.
In addition, this requires compliance with the payment of taxes and royalties.
The NNPC Limited’s dividend payment amply demonstrates that the organization is progressing in line with the PIA under the guidance of Group Chief Executive Officer Mallam Mele Kyari.
Since taking office, Kyari has worked to implement his TAPE agenda, a five-step strategic roadmap for the NNPC to achieve efficiency and international excellence.
The only option to turn around the company and make it competitive, according to Kyari, is to pursue TAPE.
According to the roadmap, the accountability campaign’s goal is to ensure adherence to business ethics, policies, and regulations as well as accountability to all stakeholders. The transparency component of the agenda aims to maintain a positive reputation and share values of integrity and transparency with all stakeholders.
Regarding the two-pronged component of performance excellence, Kyari had stated that the goal was to ingrain a high level of efficiency anchored on efficient business process implementation while also putting in place an appropriate incentive system for outstanding performance among the workforce.
The three tiers of government received a part of the N907.054 billion total distributable revenue at the FAAC meeting on Thursday in Abuja.
This included N310.501 billion in distributable statutory revenue, N273.225 billion in distributable Value Added Tax (VAT) income, N11.436 billion in distributable Electronic Money Transfer Levy (EMTL) revenue, and N320.892 billion in distributable Exchange Difference revenue.
The entire deductions for cost of collection in June 2023 were N73.235 billion, and the total deductions for transfers, refunds, and savings were N979.078 billion.
The Excess Crude Account (ECA) has a balance of $473,754.57.
According to the communiqué, the Federal Government received N345.564 billion, the State Governments N295.948 billion, and the Local Government Councils N218.064 billion out of the total distributable revenue of N907.054 billion. The relevant States received a total of N47.478 billion as a 13% derivation of revenue.
According to it, N1.152 trillion in gross statutory revenue was received in June 2023. This was N451.134 billion more than the total of N701.787 billion that was received in the previous month.
The Federal Government earned N146.710 billion from the N301.501 billion distributable statutory revenue, followed by N74.413 billion for the State Governments and N57.370 billion for Local Government Councils. N23.008 billion was distributed to the concerned States as a 13% derivation revenue.
The total value added tax (VAT) income available for the month of June 2023 was N293.411 billion. This was N23.214 billion more than the N270.197 billion that was available in May 2023.
From the N273.225bn distributable Value Added Tax (VAT) revenue, the Federal Government received N40.984bn, the State Governments N136.613bn, and the Local Government Councils N95.629bn.
The Federal Government collected N1.715 billion, the State Governments received N5.718 billion, and the Local Government Councils received N4.003 billion of the N11.436 billion Electronic Money Transfer Levy (EMTL).
The Federal Government earned N156.155 billion from the N320.892 billion Exchange Difference revenue, the State Governments received N79.204 billion, the Local Government Councils received N61.063 billion, and the remaining N24.470 billion was distributed to the relevant States as 13 percent mineral revenue.
The communiqué states that the Companies Income Tax (CIT) saw a significant increase in the month of June 2023.