The Nigerian National Petroleum Company Limited (NNPCL) has transmitted N123 billion to the Federal Government.
As per reports, the company started the profit installment into the federation account on Thursday, July 20.
The monies paid are important for the N907 billion shared by the Federal Account Allocation Committee (FAAC).
During the FAAC appropriation meeting that was led by the Accountant General of the Federation, Dr Oluwatoyin Madein, the NNPCL transmitted N123 billion to the government.
NNPCL paid N81 billion as a month to month break profit and N42 billion as a 40% production sharing contract (PSC) profit oil. This is notwithstanding consistence with the installment of eminences and assessments.
Nairametrics had recently revealed that following the fuel subsidy removal, the Federal Accounts Allocation Committee (FAAC) has seen distributable income ascend by more than 100 percent for June 2023 to N1.9 trillion from N701 billion in May.
How was NNPCL able to dispatch N123 billion to the Federal Government?
Before the removal of the fuel subsidy, the NNPCL had mourned that it was settling up to N400 billion month to month in fuel subsidy installments.
Mele Kyari the Group CEO of the NNPCL, said that the company could never again make the installments as it was cutting into its profits.
Since the fuel subsidy was removed in May 2023, the company has had the option to set aside cash as it has quit paying for fuel subsidies.
Reserve funds from the fuel subsidy system has made it feasible for NNPCL to make profit installments to the federation account.
Before this time, the NNPCL had neglected to dispatch cash to the federation account and this present circumstance had put the company in conflict with FAAC.
FAAC had blamed NNPCL for declining to pay N2.1 trillion from rough deals, eminences, and expenses.
In the interim, NNPCL had said it was making fuel subsidy installments and was being owed by the Federal Government.
Credit: NairaMetrics
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