We are not owing foreign oil traders $6.8bn - NNPC

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has refuted claims that it owes international oil traders $6.8 billion.

The NNPC’s statement follows a recent report alleging that the oil giant was in debt to foreign oil traders and had failed to remit revenue to the Federation Account since January.

Reacting to this, NNPC, in a statement on Sunday through its spokesperson, Olufemi Soneye, dismissed the allegation as inaccurate.

The company explained that while it operates on credit terms in the oil trading business, it is up-to-date with its payments and maintains open credit lines with multiple traders.

NNPC said it is paying its obligations for related invoices on a first-in-first-out (FIFO) basis.

“That 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,” NNPC said.

“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.”

The state oil company also refuted claims that it has failed to remit revenues to the Federation Account, stating,
“It is not correct to say that NNPC Ltd. has not remitted any money to the Federation Account since January.”

NNPC noted that all its subsidiaries have consistently fulfilled their tax obligations to the Federal Inland Revenue Service (FIRS).

“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 company also dismissed allegations about its involvement in the quality and quantity fiscalization of imported petroleum products, noting that it has no regulatory role in this area.

NNPC noted that the independence of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is responsible for overseeing such matters.

It stated, “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.

“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.”