The Nigerian National Petroleum Company Limited (NNPCL) has debunked allegations that it is owing international oil traders to the tune of $6.8 bn.
The nation’s oil conglomerate also denied claims that it has not remitted funds into the federation’s account since January.
The NNPC Chief Corporate Communications Officer, Olufemi Soneye, stated this in a statement on Sunday, in response to various allegations against the energy firm.
There had been an allegation that the NNPCL owes some of its suppliers as the sole importer of petrol in Nigeria.
However, Soneye admitted that the transactions were conducted on credit.
“NNPC Ltd does not owe the sum of $6.8 bn to any international trader(s). In the oil trading business, transactions are carried out on credit. So, it is normal to have outstanding amounts at certain times. However, NNPC Ltd, through its subsidiary NNPC Trading, maintains many open trade credit lines with several traders. The company is fulfilling its obligations on a first-in-first-out (FIFO) basis,” Soneye said.
Although the oil giant’s spokesman did not specify the financial commitment that the company is currently addressing.
As per the allegation of remittances to the federation’s account, Soneye said: “It is incorrect to claim that NNPC Ltd has not remitted any funds to the federation account since January. NNPC Ltd and all its subsidiaries regularly remit their taxes to the Federal Inland Revenue Service. This includes payments of CIT to road contractors under the Road Investment Tax Credit Scheme.”
“Overall, NNPC Ltd is the largest contributor to the tax revenue shared monthly at the Federation Account Allocation Committee,” he said.
Soneye stressed that NNPC is not a regulator and does not oversee the quality of imported fuel.
“Regarding the quality and quantity verification of imported petroleum products, NNPC Ltd has no role as it is not a regulatory body. The Nigerian Midstream and Downstream Petroleum Regulatory Authority, which is the relevant regulatory agency for such matters, operates independently and does not report to NNPC Ltd,” he noted.
He added that NNPC was open to media inquiries about its activities and would always provide credible information in line with the company’s commitment to Transparency, Accountability, and Performance Excellence (TAPE) as established by the Mele Kyari-led management since 2019.
