• Tuesday, June 25, 2024
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NNPC resumes dividend payments after long hiatus

90% of depot shut down operations amid FX, distribution crisis

For the first time since payment of subsidies became a nightmare, the Nigerian National Petroleum Company (NNPC) Limited has announced its has started paying dividend to shareholders, starting in July 2023.

Mele Kyari, NNPC Group Chief Executive Officer (GCEO), made this known when he led an NNPC delegation on a courtesy visit to Godswill Akpabio, the Senate President, at the National Assembly in Abuja, on Wednesday.

Kyari said that the enactment of the Petroleum Industry Act (PIA) 2021 has given birth to a new commercially oriented National Oil Company (NOC) that is governed by the Company & Allied Matters Act (CAMA) principles.

NNPC projects N2trn profit increase

According to the GCEO, the state-owned oil company is anticipating a significant boost in its profitability, projecting a N2 trillion increase when the 2022 Audited Financial Statements (AFS) are released.

“With the passage of the PIA 2021, NNPC’s profitability margins have significantly risen, growing from a loss position of N803 billion in 2018 to a profit position of N674 billion in 2021,” the GCEO said.

According to him, NNPC Limited is involved in the entire value chain of the oil and gas business and controls about 30 percent of the nation’s petroleum downstream retail market.

On the other hand, the state-owned oil firm said that it has made a robust plan for the supply of petroleum products especially Premium Motor Spirit (PMS), also known as petrol, sufficient to last beyond the ember months and the New Year festivities.

“By the creation of the National Assembly, NNPC Ltd. is saddled with the responsibility of guaranteeing Nigeria’s energy security which is critical to national security.

Kyari says PIA pushed NNPC’s profit to over N2trn in 2022

“We have made a robust plan for the forthcoming end of the year festivities and beyond. We do not see any shortages in the petroleum products supply for the period,” the GCEO said in a statement released by the state-owned oil company on Twitter.

While identifying crude oil theft and pipeline vandalism as major challenges to the Company’s business, Kyari said the recent collaboration with the nation’s security services, as well as third-party security contractors, has been yielding results, mostly in the area of increased crude oil production.

The GCEO said NNPC limited is investing in several gas and power projects across the country, aimed at supporting the Federal Government’s power generation and industrialisation aspirations.

In addition, he assured that state-owned is working to revamp local refining of petroleum products and collaborating with indigenous refiners to ensure that Nigeria becomes a net exporter of petroleum products.

Read also: Saudi Aramco pays $18.8bn dividends in Q2 as NNPC struggles with remittance

In his response, the Senate President assured the GCEO of the 10th Senate’s support, saying that the Nigerian Parliament appreciates the Kyari-led Management for its commitment to ensuring robust petroleum product supply during the yuletide period.

“Nigerians always want to hear good news. We are glad that you have made robust plans to provide sufficient product supply this coming festive period and beyond,” Akpabio stated.