NNPC speaks on $6.8 billion debt claim

On Sunday, the Nigerian National Petroleum Company Limited (NNPC Ltd) said it does not owe the sum of $6.8 billion to international traders.

Olufemi Soneye, the chief corporate communications officer of the company, disclosed this in a statement on Sunday.

The NNPC Ltd made this known in reaction to a report that the company is indebted to international oil traders to $6.8 billion and has not remitted revenues to the Federation Account since January, among other allegations.

In its statement, NNPC Ltd said it is incorrect to say that it has not remitted any money to the Federation Account since January, noting that the company and all its subsidiaries regularly remit their taxes to the Federal Inland Revenue Service (FIRS).

“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: That NNPC Ltd does not owe the sum of $6.8bn to any international trader(s),” Mr Soneye said.

In the oil trading business, he said, transactions are carried out on credit, so it is normal to owe at one point or another.

“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.

“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,” he said.

He said this is in addition to payments of Company Income Tax (CIT) to road contractors under the Road Investment Tax Credit Scheme.

In all, Mr Soneye said NNPC Ltd is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC).

On the issue of quality/quantity visualisation of imported petroleum products, he noted that NNPC Ltd has no role whatsoever as it is not a regulator.

“The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the relevant regulatory agency in charge of such issues, is an independent body and does not report to the NNPC Ltd.

“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,” he added.