The Nigerian National Petroleum Company Limited (NNPCL) clarified that the outstanding N1.3tn debt owed by the Federal Government has no connection to the payment of dividends to the government.
Despite the debt, NNPCL paid N123bn as dividends and Production Sharing Contract profit to the Federal Government in June. The company’s Chief Financial Officer, Umar Ajiya, emphasized that the dividend payment was based on projected profits and was unrelated to the government’s debt.
Opinion: The clarification by NNPCL highlights the complexity of financial transactions between the government and state-owned entities. Clear communication and transparency are essential in resolving such debt disputes and ensuring proper financial management.