NNPCL Sets Record with ₦‎10 Trillion Remittance to Nigeria's Federation Account in 2024 – Mele Kyari

 In a landmark financial disclosure, the Nigerian National Petroleum Company Limited (NNPCL) has remitted an unprecedented ₦10 trillion into the Federation Account as of September 2024, solidifying its status as Nigeria's foremost taxpayer. This monumental contribution underscores NNPCL's pivotal role in the nation's economic framework. 

Malam Mele Kyari, the Group Chief Executive Officer of NNPCL, unveiled these figures during a budget defense session before the Joint Finance Committee of the Senate and House of Representatives in Abuja. He highlighted that, in addition to the substantial remittance, NNPCL has disbursed ₦3.5 trillion in dividends post-taxes and revenue for the 2024 fiscal year. Kyari emphasized, "Our transactional account is very transparent, which is published on a yearly basis, making NNPCL the only company in Nigeria noted for that and also the highest taxpayer in the country, as well as the highest payer of royalty and dividends to shareholders as a commercial national oil company." 

In a move advocating for financial transparency, Kyari has called for a forensic audit of the funds expended by NNPCL on fuel price stabilization and ensuring uninterrupted petrol supply between January and September 2024. This initiative aims to shed light on the financial intricacies associated with maintaining fuel subsidies and the company's role as the supplier of last resort, as mandated by the Petroleum Industry Act (PIA). Kyari stated, "Until 1st October 2024, NNPCL, as mandated by the Petroleum Industry Act, acted as the supply of last resort on fuel supply, which requires forensic audit to know how much NNPCL is being owed or owing any agency." 

The call for an audit comes amid public scrutiny and allegations concerning NNPCL's financial dealings. Notably, the Coalition for Economic Liberation and Transformation (CELT) recently alleged a ₦3 trillion fuel importation fraud involving NNPCL and its business partners. CELT's Executive Director, Henry Owolabi, criticized Kyari for favoring fuel imports over domestic refining, especially given the operational capacity of the Dangote Refinery. Owolabi asserted, "Kyari’s deliberate sabotage of our refineries is criminal," further urging the Central Bank of Nigeria (CBN) to halt payments for fuel imports and demanding regulatory scrutiny into the financial and quality aspects of imported fuel. 

Additionally, the Conference of Nigeria Political Parties (CNPP) has expressed concerns over NNPCL's financial practices. The CNPP reacted to a recent demand by the Federal Account Allocation Committee (FAAC), which ordered NNPCL to pay an outstanding ₦4.56 trillion for selling petrol at a subsidized price between August 2023 and June 2024. The CNPP found it "absurd and unacceptable" that NNPCL, under Kyari's leadership, would declare a net profit of ₦3.297 trillion in its 2023 Audited Financial Statement, yet bill FAAC a whopping ₦4.56 trillion subsidy reimbursement for petrol sold in just two months. They have called for an independent forensic audit of NNPCL's operations from 2020 to date, to be conducted by a reputable international firm covering all aspects of the company's operations, including its financial dealings, contracts, and acquisitions. 

These developments highlight the complex financial landscape in which NNPCL operates, balancing its role as a significant revenue generator for Nigeria with the challenges and controversies surrounding fuel subsidies and importation practices. The proposed forensic audit is anticipated to provide clarity and ensure accountability in NNPCL's financial operations, addressing both governmental and public concerns.