NNPC Not Owing $6.8bn – Management
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has denied a media report that the company is indebted to international oil traders to the tune of $6.8 billion and has not remitted revenues to the Federation Account since January.
The company in a statement issued by Olufemi Soneye, Chief Corporate Communications Officer, said it does not owe the sum of $6.8 billion to any international trader.
It explained that though in the oil trading business, transactions are carried out on credit as such normal to owe at one point or the other, the company has been paying its obligations.
“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 statement added.
On the alleged non-remittance to Federation Account, the NNPC Ltd said, it has not reneged on its obligations.
“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),” the statement read in part.
On the issue of quality and quantity fiscalization of imported petroleum products, the NNPC said it has no role whatsoever in that, 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,” it added.
That NNPC urged media organisations to always verify their facts before going public, assuring that the company will gladly respond to any inquiry in line with its commitment to transparency, accountability, and performance excellence.
