In a move that left lawmakers astounded, the Nigerian National Petroleum Company Limited (NNPCL) revealed it remitted a staggering N10 trillion into the Federation Account in September 2024. The announcement came during a crucial presentation to the National Assembly’s joint finance committee in Abuja, where the company’s Group Chief Executive Officer (GCEO), Mele Kyari, outlined the corporation’s massive financial contributions and performance in 2024.
Kyari, who delivered the address before Senators and House of Representatives members led by Senator Sani Musa (Niger East) and James Faleke, made clear that NNPCL was not only Nigeria’s largest taxpayer but also the leading contributor of royalties and dividends in the country. His remarks underscored the corporation’s vital role in the country’s economy, positioning NNPCL as a linchpin in national fiscal policy.
“We remitted N10 trillion to the Federation Account in September 2024,” Kyari told the assembled lawmakers, highlighting the company’s unmatched financial commitment. “NNPCL is the only company in Nigeria that publishes 100% of its financial statement every year, and we remain the highest payer of royalties and dividends.”
The announcement of the N10 trillion remittance drew applause from members of the finance committee, with lawmakers acknowledging the company’s significant impact on the country’s revenue generation. However, Kyari’s statement was not limited to just figures and performance metrics—he also proposed a forensic audit to investigate the financial implications of NNPCL’s efforts in stabilizing petrol prices.
As part of its role in ensuring a consistent fuel supply, NNPCL, by virtue of the Petroleum Industry Act (PIA), had acted as the “supplier of last resort” for petrol from January to September 2024. This responsibility, Kyari explained, necessitated an in-depth financial audit to determine the exact amounts spent on stabilizing fuel prices and ensuring an uninterrupted supply to consumers across the country.
“We propose a forensic audit to ascertain how much NNPCL was owed or is still owing for its role in price stabilization,” Kyari asserted. “The price of petrol is a critical issue, and we want to ensure transparency in how we have handled the situation. Our transactional account is fully transparent, and that’s why we’re calling for this audit.”
The forensic audit request was made with a view to clarifying the fiscal mechanics behind the stabilization efforts and providing accountability to the Nigerian public regarding the large sums of money involved in managing the country’s fuel supply and pricing.
Kyari further highlighted that NNPCL’s revenue projections for 2025 would be finalized after a board meeting scheduled for two weeks later. He assured lawmakers that the parameters for the projected budget were grounded in realistic expectations, offering further confidence in the company’s financial stewardship.
The presentation by NNPCL comes at a time when the National Assembly is scrutinizing various agencies and companies for their contributions to the nation’s economy. During the same session, Dr. Abubakar Dantsoho, the Managing Director of the Nigerian Ports Authority (NPA), provided an update on the port authority’s revenue performance.
Dantsoho reported that the NPA had remitted N753 billion into the Consolidated Revenue Fund in 2024, with a projected revenue of N997 billion for the 2025 fiscal year. However, the joint finance committee was not content with the initial projection. Senators and House members, motivated by NPA’s potential, opted to increase the projected 2025 revenue to N1.75 trillion—a move aimed at maximizing the authority’s 56 different revenue sources.
“The NPA has the capacity to do more,” Senator Sani Musa said, justifying the decision to boost the revenue target. “We believe that with strategic planning, they can significantly exceed the initial target of N997 billion.”
The revised revenue forecast for NPA is seen as a testament to the authority’s capacity for growth, especially given its pivotal role in Nigeria’s maritime trade. Lawmakers are optimistic that with the right fiscal policies, the NPA can contribute even more substantially to the national economy in the coming years.
Meanwhile, Kyari’s call for greater transparency and accountability within the NNPCL is likely to set the tone for future discussions about the oil sector’s financial management. By publishing 100% of its financial records annually, NNPCL has earned a reputation for openness that has been praised both at home and abroad. However, with calls for audits and greater scrutiny, it is clear that lawmakers are intent on pushing for even greater oversight of the country’s critical industries.
The backdrop to these discussions is a country grappling with the economic ramifications of fluctuating global oil prices, mounting inflation, and the need for greater diversification of revenue sources. The NNPCL’s enormous remittances into the Federation Account are seen as a vital counterbalance to these challenges, with the company’s financial contributions helping to stabilize the Nigerian economy amid uncertain global conditions.
On the flip side, the debate about fuel price stabilization efforts underscores the complex and often controversial role NNPCL plays in the Nigerian energy sector. With rising concerns about fuel subsidies, supply disruptions, and the broader implications of NNPCL’s pricing strategies, the demand for transparency and accountability has never been higher.
As the National Assembly continues to review the performance and projections of key revenue-generating bodies, all eyes are on NNPCL to ensure that its enormous financial contributions are matched by a commitment to effective management and public accountability. The upcoming forensic audit will likely be a pivotal moment in determining how transparent and sustainable the company’s operations truly are.