The Nigerian National Petroleum Company Limited (NNPCL) clarified that the outstanding N1.3tn debt owed by the Federal Government would not impact dividend payments. On Thursday, the NNPCL asserted that the government’s debt to the company had no bearing on its dividend payments to the government.

Earlier this year, the national oil company disclosed its expectation of a N1.3tn refund from the Federation Account as part of the debt owed by the Federal Government. The debt had been a point of contention, with the government accusing the NNPCL of being indebted to the tune of approximately N2.8tn. In response, the oil company contended that the Federal Government needed to settle its outstanding claims for subsidy payments on petroleum products imports, supplies, and distribution, totaling nearly N4.1tn.

In an attempt to resolve the matter, an inter-agency committee led by President Bola Tinubu was established. A senior official from the NNPCL highlighted that while the company owed about N2.8tn to the Federal Government, the government, in turn, owed the NNPCL N1.3tn. They suggested that the government should pay the outstanding N1.3tn debt it owed to the NNPCL.

Despite the debt situation, the NNPCL made an announcement that it had paid a dividend and Production Sharing Contract profit of approximately N123bn to the Federal Government in June. The company’s Chief Financial Officer, Umar Ajiya, asserted that this demonstrated the company’s positive trajectory in accordance with the Petroleum Industry Act (PIA).

Group Raises Alarm Over Alleged N3 Trillion Fuel Importation Fraud by NNPCL, Business Partners

Solid Minerals Contributed N1 Trillion to Nigeria’s GDP Over 17 Years – NEITI

World Bank Approves $1.57bn Loan for Nigeria to Boost Health, Climate Resilience

Port Harcourt Refinery Crisis: Niger Delta Lawyers Demand Immediate Action

When questioned about the possibility of deducting part or all of the N1.3tn debt owed by the government after making the dividend payment, the NNPCL clarified that dividend payments were based on projected profits and were unrelated to the outstanding N1.3tn debt owed by the government to the company. The Chief Corporate Communications Officer, Garba-Deen Muhammad, reaffirmed this statement in response to the inquiry.

In conclusion, the NNPCL emphasized that the payment of dividends to the government would not be affected by the Federal Government’s outstanding N1.3tn debt to the company.