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NNPC denies $6.8bn indebtedness, speaks on remittances to Nigerian govt


The Nigerian National Petroleum Company Limited has denied owing international oil traders $6.8 billion.

 

This is as the firm clarified that it has been remitting taxes to the Federal Inland Revenue Service, FIRS regularly.

 

This was disclosed in a statement by the company’s spokesperson, Olufemi Soneye on Sunday.

 

The clarification comes in response to reports that said NNPCL owes international oil $6.8 billion arising from fuel importation and non-remittance to the Federation Account Allocation Committee.

 

However, the company dismissed both claims including issues on the quality and quantity fiscalization of its imported Petroleum Products.

 

“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). In the oil trading business, transactions are carried out on credit, 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.

 

“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).

 

“On the issue of quality/quantity visualization 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”, the company stated.


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