Tinubu approves NNPC dividends for petrol subsidy, halts 2024 interim payments.
President Bola Tinubu has authorized the Nigerian National Petroleum Company (NNPC) Limited to use its 2023 final dividends to cover petrol subsidy costs. This decision is part of a broader strategy to manage the financial strain caused by these subsidies, which have hindered NNPC’s ability to contribute taxes and royalties to the federation account. Additionally, Tinubu has approved a suspension of the 2024 interim dividend payments to further support NNPC’s cash flow.
NNPC’s financial forecast suggests that petrol subsidy expenses from August 2023 to December 2024 will total N6.884 trillion. This substantial subsidy burden is expected to prevent NNPC from remitting N3.987 trillion in taxes and royalties to the federation account. The exact amount of dividends withheld or deferred is yet to be confirmed.
This situation reflects the significant financial challenges posed by the ongoing subsidy program and its impact on government revenue.
