The Nigerian National Petroleum Company Limited (NNPC Ltd.) has addressed 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.
In a statement released by Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., the company made the following clarifications:
No Outstanding Debt of $6.8bn: NNPC Ltd. categorically denied owing $6.8 billion to any international oil traders. It clarified that in the oil trading business, transactions are often conducted on credit, making it common to owe at certain points. However, NNPC Ltd., through its subsidiary, NNPC Trading, maintains several open trade credit lines and pays its obligations on a first-in-first-out (FIFO) basis.
Regular Remittance to Federation Account: The company refuted claims that it has not remitted funds to the Federation Account since January. NNPC Ltd. and its subsidiaries regularly remit taxes to the Federal Inland Revenue Service (FIRS), in addition to payments under the Road Investment Tax Credit Scheme. The company emphasized that it remains the largest contributor to tax revenue shared monthly at the Federation Account Allocation Committee (FAAC).
No Role in Quality/Quantity Fiscalization: NNPC Ltd. clarified that it has no regulatory role in the quality or quantity fiscalization of imported petroleum products. This responsibility lies with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), an independent regulatory body.
Commitment to Transparency: NNPC Ltd. reiterated its openness to media inquiries regarding its operations and emphasized its commitment to the principles of Transparency, Accountability, and Performance Excellence (TAPE), as championed by the current management under Mele Kyari since 2019.
The company urged media outlets to seek clarification on any issues concerning its operations before publication to ensure accurate and factual reporting.
