The Nigerian National Petroleum Company (NNPC) Limited has refuted reports that it owes international oil traders a staggering $6.8 billion and has not remitted revenues to the Federation Account since January.
In a statement issued on Sunday, NNPC’s spokesperson, Femi Soneye, categorically dismissed these claims as false.
“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, and so it is normal to owe at one point or the other,” Soneye stated, addressing the circulating reports.
He clarified that NNPC, through its subsidiary NNPC Trading, maintains several open trade credit lines with various traders.
“The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis,” Soneye explained, underscoring the regularity of payments.
Regarding the allegation that NNPC has not remitted any funds to the Federation Account since January, Soneye dismissed it as inaccurate.
“NNPC Ltd. and all its subsidiaries remit their taxes to the Federal Inland Revenue Service (FIRS) regularly,” he said. He also highlighted that NNPC has made additional payments under the Road Investment Tax Credit Scheme, contributing to road infrastructure development.
Soneye emphasized that NNPC remains the “largest contributor” to tax revenues, which are shared monthly through the Federation Account Allocation Committee (FAAC).
The spokesperson further clarified that NNPC is not involved in the quality or quantity fiscalization of imported petroleum products, as it is not a regulatory body.
“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,” he noted.
In a bid to reaffirm NNPC’s commitment to transparency and accountability, Soneye reiterated that the company is open to media inquiries regarding its operations.
“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).”
He concluded by reaffirming NNPC’s dedication to the transparency, accountability, and performance excellence (TAPE) philosophy, a cornerstone of its management since Mele Kyari assumed leadership in 2019.
