The Nigerian National Petroleum Company Limited (NNPCL) has firmly refuted recent media reports alleging that the company is indebted to international oil traders to the tune of $6.8 billion and has failed to remit revenues to the Federation Account since January.
This was contained in a press statement released on Sunday by Chief Corporate Communications Officer of NNPCL, Olufemi Soneye.
According to the statement, “NNPC Ltd. does not owe the sum of $6.8 billion to any international trader(s). In the oil trading business, transactions are carried out on credit, and so it is normal to owe at one point or the other. However, NNPC Ltd., through its subsidiary, NNPC Trading, has many open trade credit lines from several traders. The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis.”
Addressing the allegations of non-remittance to the Federation Account, Soneye emphasized, “It is not correct to say that NNPC Ltd. has not remitted any money to the Federation Account since January. NNPC Ltd. and all its subsidiaries remit their taxes to the Federal Inland Revenue Service (FIRS) regularly. This is in addition to payments of CIT to road contractors under the Road Investment Tax Credit Scheme. In all, NNPC Ltd. is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC).”
The statement also clarified NNPC Ltd.’s role in the quality and quantity fiscalization of imported petroleum products, noting that this responsibility lies with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). “NNPC Ltd. has no role whatsoever as it is not a regulator. The NMDPRA, which is the relevant regulatory agency in charge of such issues, is an independent body and does not report to NNPC Ltd.,” Soneye stated.
Furthermore, NNPC Ltd. reiterated its commitment to transparency and accountability, welcoming inquiries from the media regarding its operations. “NNPC Ltd. is not averse to inquiries by the media into issues on and around its operations before dissemination to the public… This is in line with the company’s commitment to the Transparency, Accountability, and Performance Excellence (TAPE) philosophy as emplaced by the Mele Kyari-led management since stepping into the saddle in 2019,” Soneye concluded.
