In an exclusive report, TheCable has revealed that President Bola Tinubu has granted the Nigerian National Petroleum Company (NNPC) Ltd permission to use the 2023 final dividends meant for the federation to fund petrol subsidy payments.

Additionally, the president has approved the suspension of 2024 interim dividend payments to the federation to augment NNPC's cash flow.

According to NNPC, the subsidy payments, termed "subsidy shortfall/FX differential," will prevent the company from remitting taxes and royalties to the federation account.

An NNPC forecast obtained by TheCable estimates that the cumulative petrol subsidy bill from August 2023 to December 2024 will reach N6.884 trillion, resulting in NNPC's inability to remit N3.987 trillion in taxes and royalties.

"We are facing significant challenges in meeting our financial obligations due to the subsidy payments," said an NNPC official. "The president's approval will help us navigate this difficult period."

The total amount of dividends to be withheld or suspended is yet to be confirmed. However, NNPC is expected to pause interim dividend payments for eight months this year, from May to December.

This development highlights the ongoing struggles of the NNPC in managing the financial burden of petrol subsidy payments. As the national oil company navigates this challenging period, the impact on the federation account and the overall economy remains uncertain.