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NNPC’s Payment Of N2.1tn Dividend, N2.6tn Tax will reduce Nigeria’s financial burden– Chukwu

According to him, the total amount shared by the three tiers of government in the first seven months of this year was only N8.3tn while NNPC paid tax of N2.6tn which is almost 30 per cent of the total amount that had been shared.

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THE Chief Executive Officer of Cowry Assets Management Ltd, Jonhson Chukwu has said that the dividend and taxes paid by the Nigerian National Petroleum Company Ltd will reduce the financial burden of the federal government.
Chukwu said this in response to the record performance of the state-owned company after it released its financial accounts for 2023.
It has been reported that the company made N3.297tn net profit for 2023 which surged significantly by 28 per cent compared to the N2.54tn recorded in the previous year.
The books showed that the company recorded a historic profit before tax of N5.98tn while it paid taxes of N2.6tn to the Federal Inland Revenue Service.
NNPC also recorded a dividend of N2.6tn payable to the Nigerian government. The company had declared a loss of N803bn in 2018, and it was reduced to N1.7bn loss in 2019.
But the company led by the Group Chief Executive Officer, Mele Kyari returned to profitability in 2020 with N287bn profit and N674.1bn profit in 2021. It went further to post N2.55bn profit in 2022.
Chukwu said in an interview on Arise TV that the dividend and taxes declared by the company will reduce the financial stress of the federal government.
He said, “The federal government has made a supplementary budget of about N6tn. And then NNPC’s N2.1tn final dividend is more than 35 per cent of the supplementary budget.
“That will show you the impact this is going to have when that money comes to the foundation account.
“Bear in mind that whatever dividend they pay goes through two organs of government. One, Federal Minister of Finance, Incorporated, and Ministry of Petroleum, Incorporated and they own NNPC limited 50-50 per cent.
“So, it all goes back to the entire national treasury. And that simply means it will go into the federation account, which will be shared through the three tiers of government. And that will cushion the kind of financial stress that the governments at different levels are going through.”
He said in the past, the concern of Nigerians has always been on the issue of accountability on the part of the former Nigerian National Petroleum Corporation now NNPC.
Chukwu, while responding to the performance, likened the NNPC Ltd to Saudi Aramco, which is the biggest listed oil firm with $1.8tn market capitalisation.
Chukwu said, “I was quite impressed. You know why? Everything we’ve heard in recent past, we are all negatives about the general industry, what is going on and that. And then today we’re looking at how NNPC had turned the corner.
“If you cast your mind back just a few years ago, 2018, that company made a loss of N803bn. In 2018, you can see it virtually broke even by making a loss of only N1.7bn.
“But today we’re talking about N3.3tn profit and that is after tax payment of N2.6tn. And we need to put it in context. The NNPC is going to pay to the federation account to Federal Inland Revenue Service N2.6tn as tax before it arrived at the N3.3tn.”
The economist said the results showed that the NNPC has created value for the nation in the region of N5.3tn.
According to him, the total amount shared by the three tiers of government in the first seven months of this year was only N8.3tn while NNPC paid tax of N2.6tn which is almost 30 per cent of the total amount that had been shared.
The Cowry Assets boss explained that the NNPC could record the performance because the management possibly reduced or eliminated the loss-making arms of the organisation.
“They would have instilled some level of performance-based in different arms of an NNPC. And they have also escalated their level of reporting, and now do you have a detailed financial statement from an NNPC. For years, we did not have a detailed financial statement from an NNPC.
“So, I think NNPC being an incorporated company, like what we have in NNPC Limited, unlike what you have in Nigerian National Petroleum Corporation, when it was a corporation, and then there was no level of accountability.
“What has been brought to bear are the standards that are applicable to private sector enterprises, in terms of performance-based, board of oversight functions, budgeting, and then appraisals that actually measure performance against targets.
“And I think those things have been institutionalized and which is why we are seeing consistency in terms of their profitability and we’re seeing a steady growth in their profitability over these past few years since they turned the corner.
“And I believe those are the factors that were brought to bear that made the company turn the corner.”

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MOSOP Cautions Against Secret Drilling in Ogoniland

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There are allegations that secret drilling of crude oil has begun in some Ogoni communities, even as talks between the Federal Government and representatives of the people on the planned resumption of oil exploration in the area remain inconclusive.

Though the Movement for the Survival of the Ogoni People (MOSOP), in a statement released in Port Harcourt on Sunday by the Secretary-General of MOSOP, Stephen Nmane, insist that the citizens have embraced the idea of oil resumption because of the integrity of its leaders involved in the talks.

According to MOSOP reports of alleged compromise and alleged corruption are worrisome.

Also, MOSOP said it wanted the names of 40 Ogoni youths employed by the Nigerian National Petroleum Company Limited (NNPC Ltd) published for the sake of transparency, alleging that names of foreigners were smuggled onto the list.

Nmane specifically said oil drilling had been noticed in Ogoni communities in Tai and Eleme local government areas without the knowledge of the people, saying MOSOP condemned any forced re-entry into Ogoni, describing it as a betrayal of the spirit of the dialogue process.

READ ALSO: Tinubu’s Men Bomb Atiku on Fuel Subsidy

The statement was titled ‘Alarming Compromise of The Ogoni Oil Production Resumption Process: The Reported Massive Corruption of Leaders of The ODC’.

“It is appalling as it is disappointing that while dialogue between Abuja and Ogoni is ongoing, preliminary oil production is operationalised in parts of Ogoni by the Federal Government without the consent and social licence of the Ogoni community.

“In Ban-Ogoi and Alesa-Eleme areas, oil drilling with its attendant health and environmental toxicity is ongoing.

“To us, this is in bad faith as it betrayed the godly spirit of the dialogue.

“Therefore, we cannot but condemn this forced re-entry through the back door. Thus, we demand immediate halt of the operations and the needful done,” the statement read.

It added, “The Movement for the Survival of the Ogoni People, MOSOP, is alarmed at a damning report circulating in Ogoni and across social media platforms, alleging massive economic corruption of some key leaders of the Ogoni oil resumption dialogue process.

“This is most concerning as it is at the expense of our people. Since the allegations impugn the credibility and trustworthiness of these facilitators, the Ogoni Dialogue Committee (ODC) and its leadership, MOSOP would urge the body to publicly clear its name of the weighty allegations.

“It equally warned of dire consequences as Ogoni will not sit idly by while accrued benefits to the community are illicitly cornered by a greedy, heartless few pretending to work for our common good.

“Notwithstanding acknowledged doubtful integrity of some of these leaders, our people had embraced the process in the hope that envisaged opportunities offered would create enduring succour.

“The feeling that the hope would not materialise owing to corruption, occasioning anger and tension, is understandable. Hence, we call on the people to remain calm and law-abiding while efforts are made to address the issues.

“Saddeningly, information available to MOSOP indicates that some bigwigs of the Ogoni Dialogue Committee had been compromised to facilitate the re-entry. In fact, Ogoni youths who had protested at the operational bases reported that engineers at these sites told them to approach an ODC chieftain instead.

“Furthermore, the report also implicated the ODC facilitators in other shoddy deals. It revealed their involvement in another multi-million-dollar oil pipeline contract to be executed across Ogoni oil fields preparatory to oil resumption proper.”

It warned the Federal Government and investors interested in investing in Ogoni to be wary of predators.

“We would further counsel against hasty agreement with anyone or group without appropriate due diligence, as such will not be binding on us.

“We wish to make it categorically clear that all entered agreements on behalf of Ogoni are shoddy, unacceptable, and null and void,” the statement added.

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DPRP’s Free Fuel Delivery Expands to Kano, Imo, Nearly 10 More States

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In a move expected to reduce distribution costs for independent petroleum marketers and create room for lower petrol prices at the pump, the Dangote Petroleum Refinery & Petrochemicals (DPRP) has expanded its free petroleum product delivery initiative to Kano, Imo, Anambra and Nasarawa States.

A company statement on Sunday in Lagos, has it that the initiative, which began with deliveries to Lagos, Ogun, Rivers, Kaduna, Abuja and Delta States, is designed to bring petroleum products closer to marketers and retailers while removing the cost of transporting products over long distances from the refinery to various parts of the country. By absorbing the delivery cost, the refinery is reducing one of the key expenses built into the downstream distribution chain.

Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Fatima Aliko Dangote, said the initiative was designed to ensure that the benefits of domestic refining translate into tangible savings for businesses and consumers. “The value of domestic refining must ultimately be felt beyond the refinery gate. By absorbing the cost of delivering petroleum products to our customers, we are removing a significant component of the distribution burden and creating room for those savings to flow through the value chain to consumers. Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria.”

READ ALSO: Safe Driving: Dangote Transport Unveils Novel Real-Time Driver Monitoring Control Room

The expansion has been welcomed by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which said the initiative would significantly reduce some of the financial and logistical pressures confronting independent marketers and contribute to lower prices for consumers.

National Publicity Secretary and Public Relations Officer of IPMAN, Chinedu Ukadike, said the initiative addresses a longstanding challenge in the petroleum products distribution chain, where marketers commit substantial funds to product purchases and may then have to wait for extended periods before their orders are loaded and transported.

“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers,” Ukadike said. “There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks, and they suffer unnecessary hardship bringing the product down.”

According to him, the refinery’s delivery arrangement reduces the period for which marketers’ funds remain tied up, improves cash flow and allows businesses to deploy their capital more efficiently.

“This time around, Dangote has made it very, very easy for marketers. Marketers are jubilating, and you will see the return on investment as an independent marketer. Your money will not be tied down,” he said.

Ukadike said the initiative could also have a direct impact on pump prices because transportation represents a cost that ultimately forms part of the price paid by consumers.

“You also have less risk, and you have petroleum products at your doorstep. Other consumers will also see that our pump price will not continue to go up. The more Dangote brings down its pump price, the more independent marketers will bring down theirs,” he said.

The reduction in distribution costs is particularly significant for marketers serving locations far from the refinery. Under conventional distribution arrangements, petroleum products transported over long distances incur additional costs associated with haulage, vehicle operations, driver expenses, insurance, road risks and other logistics. Removing or reducing these costs can improve the economics of supplying those markets and create greater scope for competitive retail pricing.

The initiative also reduces the operational risks associated with moving large volumes of petroleum products over long distances. By taking products closer to their destination markets, the refinery is helping to shorten the supply chain and improve the reliability and efficiency of product distribution.

Ukadike commended the management of Dangote Refinery for the initiative and urged the company to extend the programme to more locations across the country, particularly in the northern states, to promote wider access to competitively priced petroleum products.
He described the development as a practical demonstration of the benefits of competition and deregulation in Nigeria’s downstream petroleum sector.

“This is the beauty of deregulation and competition,” he said.

The expansion comes as Nigeria’s downstream petroleum sector continues to adjust to the growth of domestic refining capacity and a more competitive market environment. The Dangote Petroleum Refinery, with a capacity of 700,000 barrels per day, is increasingly supplying refined petroleum products to the domestic market while also expanding its presence in international markets.

The free delivery initiative adds another dimension to the refinery’s impact on the downstream sector. Beyond increasing domestic supply, the refinery is now taking steps to reduce the cost of moving those products from the refinery to consumers.

For motorists and households, the potential benefit is straightforward: the lower the cost of moving petrol through the supply chain, the greater the opportunity for marketers to reduce the price consumers pay at the pump.

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Safe Driving: Dangote Transport Unveils Novel Real-Time Driver Monitoring Control Room

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Dangote Transport has taken another major step towards improving road safety with the launch of a state-of-the-art Driver Monitoring Control Room (DMCR) that allows drivers operating its trucks to be monitored in real time while on transit across Nigeria.

The innovative facility, located at the Dangote Transport operational base in Ibese, Ogun State, highlighted the company’s commitment to leveraging technology and best practices to reduce road accidents and improve drivers’ behaviour.

The Head of Operations, Dangote Transport, Ibese, Mr. David Idiege, described the DMCR as one of the latest additions to the company’s comprehensive safety architecture.

According to him, the facility enables transport control personnel to observe drivers while they are on the road, monitor compliance with safety standards and promptly intervene whenever risky behaviour is detected.

“We are constantly looking for innovative ways to strengthen safety across our transport operations. The Driver Monitoring Control Room represents another significant milestone in our efforts to ensure that all journeys are conducted safely and responsibly,” Idiege said.

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He explained that the initiative forms part of a broader strategy aimed at reducing accidents, enhancing operational efficiency and safeguarding both the drivers and other road users.

“Safety remains our highest priority. We recognize the responsibility that comes with operating a large fleet of vehicles across the country. That is why we continue to invest heavily in technology, systems and training that help us maintain the highest safety standards,” he stated.

Idiege disclosed that the company has, over the years, implemented several safety measures designed to improve driver performance and minimize risks on the road.

He listed these initiatives to include speed limiters, vehicle immobilizers, speed boosters control systems, facial recognition devices, journey management protocols, mandatory drug and alcohol testing, compulsory rest periods for drivers, periodic recertification as well as regular training and retraining programmes.

“Our approach is holistic. Technology alone is not enough. We combine technology with strict operational procedures, driver welfare programmes, competency assessments, recertification exercises and continuous capacity building to ensure that our drivers remain professional and safety-conscious at all times,” he added.

He further explained that compulsory rest policies help combat fatigue, one of the leading causes of road accidents globally.

“We do not encourage driver fatigue. Every driver is required to comply with our journey management procedures and mandatory rest schedules. We understand that alert and healthy drivers make safer decisions on the road,” he said.

Also speaking during the tour, the Head of Transport Control, Mr. Ifeanyi Ezeala, who conducted journalists around the control facility, explained that the on-board camera system installed across thousands of Dangote trucks was facilitated by technology partner Nova Tracks.

According to Ezeala, the camera system enables real-time visibility into driver conduct and provides transportation managers with critical information needed to proactively address safety concerns.

“The technology allows us to monitor driver activities while journeys are in progress. The cameras provide live feeds and alerts, helping us detect behaviours that could compromise safety and enabling us to take immediate corrective action,” Ezeala explained.

He noted that the monitoring solution is not intended to police drivers but rather to support them and ensure they operate under safer conditions.

“Our objective is preventive rather than punitive. We want to identify potential risks before they develop into incidents. By having visibility into operations in real time, we can contact drivers where necessary, provide guidance and support safer driving decisions,” he said.

Ezeala stated that the system has enhanced fleet management capabilities by providing valuable operational data that strengthens decision-making and supports the company’s overall safety objectives.

“The transportation industry is evolving rapidly, and technology now plays a critical role in fleet safety management. By integrating advanced monitoring systems into our operations, we are creating a safer environment for our drivers and for all road users,” he said.

He commended Nova Tracks for its role in deploying the technology and supporting the company’s vision for safer transportation operations.

The Driver Monitoring Control Room is the latest in a series of investments by Dangote Transport aimed at promoting safe driving, reducing accident risks and advancing operational excellence across its nationwide logistics network.

With thousands of trucks moving raw materials and finished products daily across the country, the company says it will continue to deploy innovative solutions that support safer journeys, improve driver performance and contribute to a safer road transport ecosystem in Nigeria.

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