Centre lauds Tinubu, NNPCL on astronomic earnings into FAAC

The Centre for Policy Advocacy and Transparency (CPAT) has applauded President Bola Tinubu and the Nigerian National Petroleum Corporation Limited for the steady rise in the nation’s revenue.

The Centre, in its Independence Day message to Nigerians, said President Tinubu is already keeping his promise to revive the economy.

In the statement signed by its Executive Director, Nkechi Mary Odoma, the Centre said the latest disbursement from the Federation Account Allocation Committee (FAAC) is the highest this year and in a long time.

The Centre also commended the NNPCL Managing Director, Mele Kyari, for paying an interim dividend of N14.657 billion (13% of savings) to the relevant states as derivation revenue.

Odoma noted that this is a result of foreign exchange gains with sharing to the federal, state and local governments surging to N1.1 trillion in September.

Of the distributable revenue, she recalled that it comprises distributable statutory revenue of N357.398 billion, distributable Value Added Tax (VAT) revenue of N 321.941 billion, Electronic Money Transfer Levy (EMTL) revenue of N14.102 billion, Exchange Difference revenue of N 229.568 billion and Augmentation of NN177.092 billion.

According to Odoma, this feat was made possible due to the fuel subsidy removal.

She noted that the President and Kyari have set the country on a path to greatness by singularly ending the “scandalous” subsidy regime.

“The latest figures from the Federation Account Allocation Committee (FAAC) show the highest allocations to federal, state and local governments this year,” Odoma said.

“N1.1 trillion in September alone. Staggering! This confirms that the nation is on the right track. President Tinubu pledged to address business unfriendly fiscal and monetary policies, especially the multiplicity of taxes.

“His preference for a market-driven economy is well known, particularly the growing quest to maximise revenue growth for developmental purposes.

“In his quest to remodel the economy to bring about growth and development through job creation, food security and an end to extreme poverty, he has charted a course of action targeted at achieving a higher GDP growth, which would in turn enhance significant reduction in unemployment.

“He is achieving this by budgetary reform to stimulate the economy without engendering inflation, and industrial policy to utilise the full range of fiscal measures to promote domestic manufacturing and lessen import dependency.

“His monetary policy has already benefitted the ordinary Nigerian. The Committee on Tax Reforms will improve the efficiency of tax administration in the country and address fiscal policies that are unfair or hinder the business environment and slow our growth.

“But perhaps the most obvious game changer is the removal of fuel subsidy. While the President’s decision to end the regime has come with hardship, the gains are already visible.

“It is on record that N40.1 billion was spent daily to subsidize every liter of petrol consumed in Nigeria by at least N600. It means the government spends about N1.24 trillion on fuel subsidies monthly.

“According to the World Bank, the government is projected to achieve fiscal savings of approximately two trillion naira ($2.6 billion) in 2023, equivalent to 0.9% of GDP. These savings are expected to reach over 11 trillion naira ($14.3bn) by the end of 2025.

“It took a brave and courageous man like Kyari to advise President Tinubu to make this bold decision. Kyari has brought back integrity, accountability and transparency to the oil business.

“The NNPCL accounted for an interim dividend of N14.657 billion (13% of savings). This is the highest in a long while too.

“It is true that the country is not still where we want it to be but we must continue to support Tinubu and Kyari. They mean well”.