Post-Fuel Subsidy: NNPCL returns to FAAC, remits N123bn into Federation Account

*The NNPC Limited, with the resumption of remitting proceeds to the Federation Account under the leadership of Malam Mele Kyari, Group Chief Executive Officer, is said be moving in a positive trajectory as enshrined in the Petroleum Industry Act 2021

Isola Moses | ConsumerConnect

The Nigerian National Petroleum Company Limited (NNPCL) Thursday, July 20, 2023, commenced the payment of dividend into the Federation Account in line with line with the provisions of the country’s Petroleum Industry Act (PIA) 2021.

The NNPC Limited Thursday began payment of interim dividend and PSC profit oil as part of the N907billion shared by the Federation Account Allocation Committee (FAAC) to the three tiers of government in the country.

ConsumerConnect learnt the maiden remittance came barely two months after the state oil Company exited the fuel subsidy regime, following the removal by President Bola Ahmed Tinubu, GCFR.

At the FAAC distribution Thursday, chaired by Dr. Oluwatoyin Madein, Accountant General of the Federation, the NNPCL remitted N123 billion into the coffers of Federal Government.

Further analysis of the N123 billion indicated that the National Oil Company (NOC) paid N81bn as a monthly interim dividend and N42bn as 40 percent PSC profit oil.

This is also in compliance with payment of royalties and taxes, a report said.

NNPC Limited resumes contributions to FAAC

The NNPC Limited, with the resumption of remitting proceeds to the Federation Account, indicates that the oil company, under the leadership of Malam Mele Kyari, Group Chief Executive Officer (GCEO), is moving in a positive trajectory as enshrined in the PIA 2021.

Since assumption of office, Kyari has said his leadership of the NNPCL would pursue his Transparency, Accountability and Performance Excellence (TAPE) agenda, a five-step strategic roadmap for NNPC’s attainment of efficiency and global excellence.

Kyari, during the inauguration, had said pursuing TAPE was the only way to turn around the corporation and make it competitive.

Under the roadmap, the Transparency component of the agenda was aimed at maintaining positive image, share values of integrity and transparency to all stakeholders, while the Accountability segment of the campaign is to assure compliance with business ethics, policies, regulations and accountability to all stakeholders.

In terms of the two-prong item of Performance Excellence, Kyari had said the idea was to entrench a high level of efficiency anchored on effective implementation of business processes which would also emplace an appropriate reward system for exceptional performance among the workforce.

FAAC shares N907.054bn distributable revenue to 3 tiers of government

During the FAAC meeting held Thursday, in Abuja, the Committee stated a total of N907.054billion distributable revenue was shared to the three tiers of the Nigerian Government.

This comprised distributable statutory revenue of N301.501 billion, distributable Value Added Tax (VAT) revenue of N273.225 billion, Electronic Money Transfer Levy (EMTL) revenue of N11.436 billion and Exchange Difference revenue of N320.892 billion.

In June this year, the total deductions for cost of collection was N73.235bn and total deductions for savings, transfers and refunds was N979.078bn.

The balance in the Excess Crude Account (ECA) was $473,754.57

The communiqué stated that from the total distributable revenue of N907.054bn; the Federal Government received N345.564bn, the State Governments received N295.948bn and the Local Government Councils received N218.064bn.

A total sum of N47.478bn was shared to the relevant States as 13 percent derivation revenue.

It stated that gross statutory revenue of N1.152trn was received for the month of June 2023.

This was higher than the sum of N701.787bn received in the previous month by N451.134bn.

From the N301.501bn distributable statutory revenue, the Federal Government received N146.710bn, the State Governments received N74.413bn and the Local Government Councils received N57.370bn.

The sum of N23.008bn was shared to the relevant States as 13 per cent derivation revenue.

For June 2023, the gross revenue available from the Value Added Tax (VAT) was N293.411bn.

This was higher than the N270.197bn available in the month of May 2023 by N23.214 billion.

The Federal Government received N40.984bn, the State Governments received N136.613bn and the Local Government Councils received N95.629bn from the N273.225bn distributable Value Added Tax (VAT) revenue.

The N11.436bn Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N1.715bn, the State Governments received N5.718bn and the Local Government Councils received N4.003bn.

According to the Committee’s communiqué, Companies Income Tax (CIT) recorded tremendous increase June 2023.

From the N320.892i billion Exchange Difference revenue, the Federal Government received N156.155bn, the State Governments received N79.204bn, the Local Government Councils (LGCs) received N61.063bn and the sum of N24.470bn was shared to the relevant States as 13 percent mineral revenue, it stated.

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