President Bola Tinubu has reportedly approved the use of 2023 dividends due to the federation by the Nigerian National Petroleum Company Limited (NNPCL) to cover petrol subsidy costs.
This decision comes despite the government’s earlier stance on subsidy removal, which Tinubu had described as necessary to alleviate economic strain.
The approval, granted on June 6, 2024, also includes suspending the payment of 2024 interim dividends to the federation to support NNPCL’s cash flow.
NNPCL had informed the president that all strategies to ensure a stable gasoline supply had been exhausted, leaving the company unable to remit funds to the Federation Account.
The total projected petrol subsidy expenses from August 2023 to December 2024 are estimated at ₦6.884 trillion, impacting NNPCL’s ability to remit ₦3.987 trillion in taxes and royalties.
The exact amount of dividends affected remains unconfirmed.
Earlier, it was reported that Oil Marketers blamed logistics for their inability to deliver fuel to Nigerians.
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