Between January and November last year, the Nigerian National Petroleum Company Ltd remitted the sum of N4.5trn into the federation account for distribution to the three tiers of government.
The remittance was confirmed by the Chief Finance Officer of the NNPC Ltd Umar Ajiya in a 5.24 minutes video released by the National Oil Company.
All tiers of government depend on revenue from the federation account to finance development projects and Section 165 of the Constitution of the Federal Republic of Nigeria 1999 as well as the Allocation of Revenue (Federation Account, etc.) Act No.1 1982, stipulates that the revenues generated by the Federal government should be credited into the Federation Account and disbursed monthly among the three tiers of government as defined in the Revenue Act 1982.
The NNPCL is a major revenue generating agency in Nigeria, operating as the national oil company in charge of the management, sales, among others of the country’s crude oil and gas, among other key functions.
Ajiya said fuel subsidy stopped the revenue generating firm from remitting taxes and royalties to the Federation Account, as well as halted the company from making profit.
However, he added that the removal of subsidy had made the company to start making remittances into the Federation Account.
He said, “We have now begun to pay dividends to the federation. We are also paying our due obligations in terms of taxes and royalties.
“For the first time in a long time, NNPC Ltd in 2023 contributed to the Federation Account, accounting for N4.5tn between January and September 2023.”
NNPC Ltd in 2022 continued to show resilience by increasing its profitability despite the harsh operating environment that has constrained many businesses in Nigeria.
Specifically, the audited financial statement for the year ended December 2022 showed that the NNPC Limited total assets rose to N58.65trn.
This is an increase of about 260.47 per cent when compared to the N16.27trn which the total asset was in the 2021 financial period.
A breakdown of the total asset figure of N58.65trn showed that non-current assets was N37trn while the company’s current assets stood at N21.59trn as of the end of 2022.
During the period under review, the NNPCL also increased its revenue profile by 37.2 per cent from N6.42trn in 2021 to N8.81trn.
In terms of profitability, the Financial Statement revealed that the company recorded Profit After Tax of N2.52trn, representing about 274 per cent increase when compared to the N674bn it recorded in 2021.
Source: The Whistler