NNPC remitted N4.5trn into FAAC account in 10 months, says Kyari

Mele Kyari, group chief executive officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, says the firm remitted N4.5 trillion into the federation account from January to October 2023. 

Addressing the senate committee on finance on Wednesday, Kyari said contrary to reports, the oil firm has been doing well since the passage of the Petroleum Industry Act (PIA).

“The NNPC Limited is (sic) a creation of the National Assembly, requires that we conduct business transparently and profitably in line with provisions of the law and to create value for shareholders, and not to lose money, and also to continue to add value and pay dividends to shareholders,” he said.

“I’m glad to inform you Mr Chairman and Distinguished Senators that as of October we were able to deliver N4.5 trillion Naira into the federation account as a company to this country in 2023.

“Every national oil company has a trading company. We have always had one that never worked before PIA Implementation.”

Kyari said the NNPC is delivering on its mandate through the PIA reforms that have “brought us to be at par with our peers, across the globe, and not to lose money anymore”.

WHY COMPANIES WITHDREW FROM PETROL IMPORTATION

Speaking further, the NNPC GCEO said private oil companies withdrew from the importation of petrol because they could not manage the responsibility the PIA imposed on them.

He said the national oil company is managing petrol importation into the country. 

“The oil companies withdrew because they can’t manage the oscillation and responsibility that the Petroleum Industry Act imposed on us,” he said. 

“We have the market and I can assure you that we are managing this. 

“Some marketers buy from us and sell. But there is an element that we can’t control. For instance, truck owners can adjust their prices, we have no control over that.”

Kyari said the distortion in the foreign exchange (FX) market, which the marketers claimed was a deterrent to their participation in the fuel importation business, was nothing to worry about. 

“There is always a parallel market in every country. There is also an import and export window in every country, even in the developed world,” Kyari said. 

“But there is always a narrow gap between the two and it takes time for you to have stability in this gap so that you have a low margin between the two for a sustained period, then businesses will thrive.”

He expressed confidence that by the end of the first quarter (Q1) of next year, “those margins will narrow and stability will come and you will see others coming into the importation market”.