NNPC to use the 2023 final dividends to cover the cost of petrol subsidies

NNPC informed the president that, due to the subsidy payments, it is currently unable to pay taxes and royalties.

President Bola Tinubu has approved the Nigerian National Petroleum Company (NNPC) Limited to use the 2023 final dividends owed to the federation to cover the cost of petrol subsidies.

In addition, the president has approved a halt on the payment of 2024 interim dividends to the federation to help boost NNPC’s cash flow.

Also, NNPC informed the president that, due to the subsidy payments, it is currently unable to pay taxes and royalties into the federation account, referring to this as a “subsidy shortfall/FX differential.”

A forecast from NNPC, obtained by the newspaper, indicated that the total petrol subsidy expenses from August 2023 to December 2024 will amount to N6.884 trillion, leaving the company unable to remit N3.987 trillion in taxes and royalties to the federation account.

The exact amount of dividends that would be withheld or put on hold could not be verified at the time of filing this report.