The Nigerian National Petroleum Company Limited (NNPC Ltd.) wishes to address recent media reports alleging that the company is indebted to international oil traders in the amount of $6.8 billion and has failed to remit revenues to the Federation Account since January.
To clarify:
1. No Outstanding $6.8 Billion Debt: NNPC Ltd. categorically denies owing $6.8 billion to any international traders. In the oil trading industry, transactions often operate on credit terms, which can lead to temporary balances. However, NNPC Ltd., through its subsidiary NNPC Trading, manages numerous trade credit lines and consistently settles its obligations on a first-in, first-out (FIFO) basis.
2. Regular Revenue Remittance: Contrary to claims, NNPC Ltd. has been remitting funds to the Federation Account regularly. The company, along with its subsidiaries, consistently pays taxes to the Federal Inland Revenue Service (FIRS) and contributes to the Road Investment Tax Credit Scheme. NNPC Ltd. remains the largest contributor to the tax revenues distributed monthly by the Federation Account Allocation Committee (FAAC).
3. Clarification on Product Fiscalization:NNPC Ltd. does not oversee the quality or quantity fiscalization of imported petroleum products, as this responsibility lies with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). NMDPRA operates independently and does not report to NNPC Ltd.
4. Commitment to Transparency: NNPC Ltd. welcomes media inquiries regarding its operations and is committed to providing accurate information to the public. This is in line with the company’s Transparency, Accountability, and Performance Excellence (TAPE) initiative, championed by the Mele Kyari-led management since 2019.
Olufemi Soneye
Chief Corporate Communications Officer
NNPC Ltd.
Abuja
August 18, 2024
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