The Nigerian National Petroleum Company Limited (NNPC Ltd.) has denied recent claims that it owes $6.8 billion to international oil traders and has failed to remit revenues to the Federation Account since January.
In a statement, Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., clarified that the company does not owe $6.8 billion to any international traders. Soneye explained that credit transactions are common in the oil trading industry, and while it is normal to have outstanding payments at times, NNPC Ltd. is actively fulfilling its obligations through its subsidiary, NNPC Trading, on a first-in-first-out (FIFO) basis.
Soneye also addressed the allegation that NNPC Ltd. has not remitted any funds to the Federation Account since January, stating that the company and its subsidiaries consistently pay taxes to the Federal Inland Revenue Service (FIRS). Additionally, NNPC Ltd. contributes significantly to the Federation Account Allocation Committee (FAAC) through various payments, including those under the Road Investment Tax Credit Scheme.
Regarding the quality and quantity assessment of imported petroleum products, Soneye emphasized that NNPC Ltd. is not responsible for this process, as it falls under the jurisdiction of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), an independent regulatory body.
According to him, “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).
“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.”
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