By Amah
Kindly share:
The Nigerian National Petroleum Company (NNPC) Ltd. has received President Bola Tinubu’s approval for its request to use its 2023 final dividend to fund petrol subsidy.
The President also approved the suspension of the payment of 2024 interim dividends as part of measures targeted at enhancing the cash flow of the organisation.
The NNPC reported that the cumulative petrol subsidy bill from August 2023 was expected to hit N6.884 trillion by December 2024, thus necessitating support from the government.
However, it is not yet clear how much of the dividends the NNPC Ltd. would withhold to enable it fund the petrol subsidy though its 2023 Audited Financial Statement (AFS) disclosed that the Company declared N2.1 trillion dividend at the close of the financial year which ended in December 2023.
It informed President Tinubu in June 2024 this year that the subsidy payments were becoming unbearable as well as certain, such as foreign exchange pressure, which negatively impacted its financial health and sought urgent government intervention.
The NNPC Ltd. also pointed out that of the organization, making it difficult to sustain petrol importation.
