NNPC Debunks Claims of $6.8bn Debts to Foreign Oil Traders

By Adedapo Adesanya

The Nigerian National Petroleum Company (NNPC) Limited has debunked a report that it owes international oil traders about $6.8 billion.

In a statement on Sunday, the Chief Corporate Communications Officer of the state oil firm, Mr Olufemi Soneye, also refuted claims that the NNPC has not remitted funds into the federation account since January.

Mr Soneye, however, acknowledged that it is normal to owe at one point or the other since the oil trading business, transactions are carried out on credit.

“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,” he said.

“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 added.

The NNPC also clarified the issue of quality/quantity fiscalization of imported petroleum products, saying it has no role whatsoever as it is not a regulator.

According to the statement, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the relevant regulatory agency in charge of such issues.

It added that the NMDPRA is an independent body and does not report to the NNPC.

“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 statement added.

Business Post reports that this is the latest debunking the energy company has done over the last couple of weeks, which includes refuting allegations that it was selling job slots.