In a move to consolidate its post Petroleum Industry Act (PIA) 2021 status as an income generating company, the Nigerian National Petroleum Company Limited (NNPCL), on Thursday commenced the payment of interim dividend and PSC profit oil into the Federation Account Allocation Committee (FAAC).
Recalled that on Thursday, FAAC shared N907 billion into the coffers of the three tiers of government with the nation’s oil giant contributing N81 billion as a monthly interim dividend and N42 billion as 40 per cent PSC profit oil totaling N123 billion.
This payment according to inside sources “is in addition to compliance on payment of royalties and taxes”.
The move, which is a marked departure from previous years of sleaze and wastages, according to a top NNPCL source is to set the track for future profitability and global best practices designed to build the company into a world class oil company in the ranks of Saudi Aramco, China Petroleum & Chemical Corp., Exxon Mobil Corp., and others.
“The goal of the Mallam Mele Kyari led NNPCL is to set the nation’s oil company on the path of profitability and sustainable growth. Since the transformation of the NNPC from a loss making organization pre-PIA to a robust profit making company post-PIA, the company under the Group Chief Executive Officer (GECO) has pursued global governance best practices aimed at repositioning the company for greater growth,” another source at the NNPC Limited said on Friday.
The source that spoke on condition of anonymity said the payment to FAAC“ clearly shows that the company under the leadership of Kyari is moving in a positive trajectory as enshrined in the PIA”.
A statement issued by Bawa Mokwa Director (Press and Public Relations), on the FAAC sharing said the N907.054 billion total distributable revenue 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.
He said in June 2023, the total deductions for cost of collection was N73.235 billion and total deductions for savings, transfers and refunds was N979.078 billion noting that the balance in the Excess Crude Account (ECA) was $473,754.57
The communiqué which was issued at the end of the FAAC meeting chaired by the Accountant General of the Federation (AGF) Dr Oluwatoyin Madein stated that from the total distributable revenue of N907.054 billion; the Federal Government received N345.564 billion, the State Governments received N295.948 billion and the Local Government Councils received N218.064 billion. A total sum of N47.478 billion was shared to the relevant States as 13% derivation revenue.
Gross statutory revenue of N1,152.921 billion was received for the month of June 2023. This was higher than the sum of N701.787 billion received in the previous month by N451.134 billion.
From the N301.501 billion distributable statutory revenue, the Federal Government received N146.710 billion, the State Governments received N74.413 billion and the Local Government Councils received N57.370 billion. The sum of N23.008 billion was shared to the relevant States as 13% derivation revenue.
For the month of June 2023, the gross revenue available from the Value Added Tax (VAT) was N293.411 billion. This was higher than the N270.197 billion available in the month of May 2023 by N23.214 billion.
The Federal Government received N40.984 billion, the State Governments received N136.613 billion and the Local Government Councils received N95.629 billion from the N273.225 billion distributable Value Added Tax (VAT) revenue.
The N11.436 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government received N1.715 billion, the State Governments received N5.718 billion and the Local Government Councils received N4.003 billion.
From the N320.892 billion Exchange Difference revenue, the Federal Government received N156.155 billion, the State Governments received N79.204 billion, the Local Government Councils received N61.063 billion and the sum of N24.470 billion was shared to the relevant States as 13 percent mineral revenue.
According to the communiqué, in the month of June 2023, Companies Income Tax (CIT) recorded tremendous increase. Import and Excise Duties, Value Added Tax (VAT), Oil and Gas Royalties increased significantly, while Petroleum Profit Tax (PPT) and Electronic Money Transfer Levy (EMTL) decreased considerably.