The Federal Government received N347.5 billion in dividends from its portfolio companies in 2023, marking a 567 percent growth from the N52.1 billion received from these companies in 2022.
The disclosure is according to the 2023 Annual Asset Report of the Ministry of Finance Incorporated (MOFI).
NNPC Limited contributed the bulk of the dividends, with about N243.5 billion in dividends paid to the Federal Government in 2023. According to the report, NNPCL paid out about N487 billion to the Federation during the year.
Nigeria Deposit Insurance Corporation (NDIC) made a N90.5 billion remittance to the Consolidated Revenue Fund of the Federal Government. In 2022, NDIC paid the Federal Government N45 billion in dividends. Bank of Industry paid a N7.8 billion dividend to the Federal Government in 2023, while the Development Bank of Nigeria paid N1.8 billion as dividends during the year.
African Reinsurance Corporation paid N3.2 billion as dividends to the Federal Government in 2023. According to the report, the dividend was based on the company’s 2019, 2021, and 2022 earnings. The Federal Government also received a N400 million dividend from the Royal Eswatini Sugar Corporation, where the FG holds a 10 percent stake.
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The Nigeria Mortgage Refinance Company (NMRC) paid a N100 million dividend to the Federal Government, after declaring a N1.76 billion total dividend during the year. Family Homes Funds Limited paid a N100 million dividend to the FG in 2023.
As of the end of FY 2023, the Federal Government through MOFI had a 38.6 percent in twenty companies with a cumulative valuation of N78.4 trillion.
MOFI holds stakes in four energy companies, namely Abuja Electricity Distribution Company (AEDC), NNPCL, Eko Distribution Company (EKEDC), and Haske Solar Company. It also holds a stake in eight financial services companies, namely, BOI, Africa Re, Development Bank of Nigeria, NMRC, Nigeria Sovereign Investment Authority (NSIA), The Infrastructure Bank (TIB), and Nigerian Export-Import Bank (NEXIM), and NDIC.
The twenty companies also had a cumulative total asset of N267.1 trillion at the end of 2023, up from N73.5 trillion at the end of 2022.
Unsurprisingly, the NNPC Limited drove the bulk of the profits generated by the FG’s companies in 2023. The firm generated a net income of N3.3 trillion in 2023, from N2.5 trillion as of 2022.
During the year under review, The Infrastructure Bank (TIB) recorded the highest loss, with N1.36 trillion. In 2022, the TIB recorded a N2.4 trillion loss.
