President Tinubu Approves NNPC’s Petrol Subsidy Payment

President Tinubu Approves NNPC’s Petrol Subsidy Payment....KINDLY READ THE FULL STORY HERE▶

President Bola Tinubu has approved the Nigeria National Petroleum Company Limited’s (NNPCL) request to use its 2023 dividends to cover petrol subsidy costs. These dividends were initially intended for the federation account, which distributes funds among the three tiers of government…… CONTINUE READING

This decision comes despite the federal government’s ongoing denial of the petrol subsidy’s existence, following President Tinubu’s declaration that “subsidy is gone” on his inauguration day, May 29, 2023.

According to Naija News, Finance Minister Wale Edun mentioned that the difference between the landing cost of petrol and its retail price is covered by an unnamed organization. The Cable reported that President Tinubu has also approved the suspension of 2024 interim dividends to support NNPC’s cash flow.

NNPCL informed the President that it would be unable to remit taxes and royalties to the federation account due to the subsidy payments, which it describes as a “subsidy shortfall/FX differential.” An NNPC forecast revealed that the cumulative petrol subsidy bill is expected to reach ₦6.884 trillion by December 2024, leaving the company unable to remit ₦3.987 trillion in taxes and royalties. As a result, NNPC will pause interim dividend payments from May to December this year.

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