{"id":335438,"date":"2024-08-19T16:08:53","date_gmt":"2024-08-19T15:08:53","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=335438"},"modified":"2024-08-19T16:08:53","modified_gmt":"2024-08-19T15:08:53","slug":"tinubu-approves-payment-of-fuel-subsidy-using-nnpcl-dividends","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2024\/08\/19\/tinubu-approves-payment-of-fuel-subsidy-using-nnpcl-dividends\/","title":{"rendered":"Tinubu Approves Payment of Fuel Subsidy Using NNPCL Dividends"},"content":{"rendered":"<ul class=\"list-disc pl-8\">\n<li><strong>President Bola Tinubu approves using NNPCL&#8217;s 2023 dividends to cover petrol subsidies, suspending 2024 interim dividends to manage cash flow<\/strong><\/li>\n<li><strong>Despite announcing the subsidy removal, Tinubu&#8217;s government continues to spend billions on subsidies, facing protests over economic hardships<\/strong><\/li>\n<\/ul>\n<hr \/>\n<p>President Bola Tinubu has reportedly approved the use of the 2023 dividends due to the federation by the Nigerian National Petroleum Company Limited (NNPCL) to cover the cost of petrol subsidies, according to a report by <em>TheCable<\/em>. Additionally, Tinubu has suspended the payment of 2024 interim dividends to the federation to help the oil company manage its cash flow.<\/p>\n<p>Despite Tinubu&#8217;s announcement of removing the fuel subsidy during his inaugural address on May 29, 2023, there have been ongoing indications that the government continues to spend billions on subsidies. However, the Federal Government has consistently denied these claims.<\/p>\n<p>In response to recent protests over nationwide hardship, where one of the demands was the reinstatement of the fuel subsidy, Tinubu reiterated in a national broadcast that the subsidy would not be returned. He described the decision to remove it as &#8220;painful but necessary,&#8221; stating that it had been a &#8220;noose around the economic jugular of our Nation&#8221; and had impeded economic development.<\/p>\n<p>According to the report, Tinubu approved using the <a href=\"https:\/\/www.withinnigeria.com\/news\/2023\/07\/23\/why-we-paid-n123bn-interim-dividend-to-faac-nnpcl-2\/\">NNPCL<\/a> dividends for subsidy payments after the company informed him that it had exhausted all strategies to maintain a stable gasoline supply in the country. These strategies included improving oil production by combating theft and vandalism, debt rescheduling, payment deferrals to suppliers and contractors, postponement of non-critical projects, and debt recovery. Despite these efforts, NNPCL warned that it would no longer be able to remit funds into the Federation Account.<\/p>\n<p>The report indicates that President Tinubu directed NNPCL to use taxes, royalties, and other funds intended for the Federation Account to cover the fuel subsidy costs. This approval was reportedly given on June 6, 2024.<\/p>\n<p>NNPCL&#8217;s forecast, as obtained by the newspaper, shows that the total petrol subsidy expenses from August 2023 to December 2024 will amount to \u20a66.884 trillion. Consequently, the company will be unable to remit \u20a63.987 trillion in taxes and royalties to the Federation Account during this period. The specific amount of dividends that will be withheld or suspended could not be confirmed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Bola Tinubu approves using NNPCL&#8217;s 2023 dividends to cover petrol subsidies, suspending 2024 interim dividends to manage cash flow Despite announcing the subsidy removal, Tinubu&#8217;s government continues to spend billions on subsidies, facing protests over economic hardships President Bola Tinubu has reportedly approved the use of the 2023 dividends due to the federation by [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":317366,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored 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