NNPCL delivers an unding N4.5 trillion to federation account

The Nigeria National Petroleum Company Limited (NNPCL) delivered an astounding N4.5 trillion to the federation account in October 2023, according to Mele Kyari, the company’s group managing director, during a recent meeting with the Senate Committee on Finance.
Kyari emphasised the company’s commitment to transparency and balancing its financial records at the meeting on December 13 in the National Assembly building.
AllNews.ng recalls that Nigeria is the top producer of crude oil in Africa for November 2023, according to the Organisation of Petroleum Exporting Countries (OPEC) recent monthly report on the oil market.
Nonetheless, the study expressed worries about the ambiguity surrounding other areas of oil revenue, such as the cost of eliminating subsidies and continuous deductions from total Federation revenue.
Along with the substantial changes in the exchange rate and worldwide oil prices, concerns were raised about the stability of retail petrol prices, which have not changed much since August 2023.
Questions concerning the transparency of pricing methods were raised by this mismatch.
Mele Kyari reiterated NNPCL’s commitment to operating legally compliant, financially, and transparently while speaking to the Senate Committee.
He explained that the company’s objectives are to generate value for owners, sustain profitability, and distribute dividends, given its formation by the National Assembly. By the conclusion of the first quarter of 2024, Kyari was confident that margins would make more sense, stabilising the market.
He stated, “Every national oil company has a trading company. We have always had one which never worked before the PIA’s implementation. Currently, NNPCL is delivering on its mandate through the PIA reforms that have brought us to be at par with our peers, across the globe, and not to lose money anymore.
“There is always a parallel market in every country. There is also an import and export window in every country, even in the developed world. But there is always a narrow gap between the two and it takes time for you to have stability in this gap so that you have a low margin between the two for a sustained period, then businesses will thrive.
“There is a line of sight around this. I am very confident that by the end of the first quarter of next year (Q1/2024), those margins will narrow, and stability will come, and you will see others coming into the market.”
Kyari highlighted the positive impact of the Petroleum Industry Act (PIA) reforms on NNPCL’s operations, positioning the company on par with global peers.

Source: allnewsng.com

EntekHub.com

All Author Posts