By: News Peddlers
The report which is based on a NNPC prediction acquired by the newspaper, stated that total fuel subsidy expenses from August 2023 to December 2024 will reach N6.884 trillion, leaving the business unable to remit N3.987 trillion in taxes and royalties to the federation account.
Despite the Nigerian government's repeated denials of nonpayment of fuel subsidies, President Bola Tinubu has authorised the Nigerian National Petroleum Company (NNPC) Limited to utilise the 2023 final dividends owed to the federation to cover the expense of petrol subsidies, according to BusinessDay.
To help enhance NNPC's financial flow, the president reportedly approved a stop on the payment of interim dividends to the federation in 2024.
The NNPC told the president that, due to subsidy payments, it is currently unable to pay taxes and royalties into the federation account, calling to this as a "subsidy shortfall/FX differential".
The claim, which is based on a NNPC prediction acquired by the daily, stated that total fuel subsidy expenses from August 2023 to December 2024 will reach N6.884 trillion, leaving the business unable to remit N3.987 trillion in taxes and royalties to the federation account.
The actual number of dividends that will be withheld or put on hold could not be verified at the time of filing this report.