By Sabiu Abdullahi
In a move that contradicts previous government denials, President Bola Tinubu has approved a plan to redirect dividends owed to the federation to cover the cost of petrol subsidies.
This is contained in a report released by BusinessDay.
The Nigerian National Petroleum Company (NNPC) Limited will utilise the 2023 final dividends to offset subsidy expenses, with the president also suspending 2024 interim dividends to bolster the company’s finances.
The NNPC had warned that subsidy payments have severely impacted its ability to contribute taxes and royalties to the federation account.
Internal forecasts indicate that petrol subsidy expenses from August 2023 to December 2024 will total N6.884 trillion, resulting in a shortfall of N3.987 trillion in taxes and royalties owed to the federation account.
The exact dividend amount affected by this decision remains undisclosed.