NNPC’s dividends to FG drops from $11.9 billion to $1.83 billion as PIA kicks in

Oct. 7, 2024 - Nairametrics

The dividends from Nigerian National Petroleum Company (NNPC) Limited to the federation account, derived from crude oil and gas sales through joint venture assets, dropped sharply from $11.9 billion to $1.

83 billion after the full implementation of the Petroleum Industry Act (PIA). NNPC Retains 60% of Oil and Gas ProfitsThe report highlights that with the implementation of the PIA, NNPC has been deducting 60% of profit oil and gas from Production Sharing Contracts (PSCs).

The publication reveals that crude oil and gas sales through the NNPC are among the affected revenue streams. The report indicates that in 2021, prior to the PIA, the Federation’s share from crude oil sales through NNPC totalled $11.

308 billion, representing 74.43% of the total sales value of $15.

192 billion. The publication highlights that in 2023, the largest share of crude oil sales—$11.

348 billion, or 68.91%—went to NNPC.

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