NNPC Refutes $6.8 Billion Debt Allegation, Affirms Regular Federation Account Remittance

The Nigerian National Petroleum Company Limited (NNPCL) has addressed claims circulating in the media (Not Newsbeatng) regarding a supposed debt of $6.8 billion owed to international oil traders.

The company categorically denied the allegation, stating that it does not owe such an amount to any international traders.

This was contained in a statement issued on Sunday by NNPCL Chief Corporate Communications Officer, Olufemi Soneye.

NNPCL clarified that credit transactions are standard practice in the oil trading business. It is common for outstanding balances to exist at different times.

However, NNPCL through its trading subsidiary, NNPC Trading, has numerous open trade credit lines with several traders.

The company is actively meeting its financial obligations by paying invoices on a first-in, first-out (FIFO) basis.

Contrary to reports, NNPC Ltd. insists it has consistently remitted funds to the Federation Account, dismissing claims of non-remittance since January.

The company and its subsidiaries regularly fulfill their tax obligations to the Federal Inland Revenue Service (FIRS).

Additionally, NNPCL contributes to the Road Investment Tax Credit Scheme, further demonstrating its commitment to national development.

As the largest contributor to tax revenue, NNPCL plays a pivotal role in the monthly revenue allocations shared at the Federation Account Allocation Committee (FAAC).

Addressing concerns about the quality and quantity fiscalization of imported petroleum products, NNPCL clarified that it has no regulatory role in this process.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the independent body responsible for overseeing these matters and does not report to NNPCL.

NNPCL encouraged media inquiries into its operations, emphasizing its commitment to transparency and accountability.

“The company remains open to providing accurate information to the public through various media channels.

This commitment aligns with the Transparency, Accountability, and Performance Excellence (TAPE) initiative championed by Mele Kyari’s management since 2019”, said NNPCL.

Below is the full statement

NNPC Ltd is not owing $6.8bn

The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to a media report that the company is indebted to international oil traders to the tune of $6.8bn and that it has not remitted revenues to the Federation Account since January, among other allegations.

Consequently, the following clarifications have become necessary:

1. That NNPC Ltd. does not owe the sum of $6.8bn 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. But 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.

2. 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).

3. On the issue of quality/quantity fiscalization of imported petroleum products, NNPC Ltd. has no role whatsoever as it is not a regulator. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which is the relevant regulatory agency in charge of such issues, is an independent body and does not report to the NNPC Ltd.

4. That NNPC Ltd. is not averse to inquiries by the media into issues on and around its operations before dissemination to the public either through the print or electronic channels of communication as the company will, always, gladly take the opportunities to state the facts of the subject matter(s). 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.

Olufemi Soneye
Chief Corporate Communications Officer
NNPC Ltd.
Abuja

18 August, 2024