By Adewale Sanyaolu and Adanna Nnamani (Abuja)
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has firmly denied recent allegations that it is indebted to international oil traders to the tune of $6.8 billion and that it has failed to remit revenues to the Federation Account since January.
In a statement issued over the weekend, Olufemi Soneye, the company’s spokesperson, clarified that oil trading operates on a credit basis, making it common for transactions to involve temporary debts. However, he emphasized that NNPC Ltd., through its subsidiary NNPC Trading, responsibly manages multiple open trade credit lines and adheres to a structured first-in, first-out (FIFO) payment approach to settle its obligations in a timely manner.
Soneye addressed concerns about the company’s remittance practices, stating unequivocally that NNPC has not defaulted on its duties. “It is incorrect to claim that NNPC Ltd. has not remitted funds to the Federation Account since January,” he asserted. The spokesperson further explained that NNPC Ltd. and its subsidiaries consistently remit their taxes to the Federal Inland Revenue Service (FIRS) as required. In addition to regular tax payments, NNPC contributes significantly to the Road Investment Tax Credit Scheme by providing Corporate Income Tax (CIT) payments for road projects. “NNPC Ltd. remains the largest contributor to the tax revenue shared monthly at the Federation Account Allocation Committee (FAAC),” he added.
Regarding the issue of quality and quantity control of imported petroleum products, Soneye clarified that NNPC Ltd. has no regulatory role in this process. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the independent body responsible for overseeing these matters and operates independently of NNPC.
In line with its commitment to transparency, Soneye welcomed media inquiries into the company’s operations, emphasizing that NNPC remains open to providing accurate information before any dissemination to the public. He reiterated the company’s dedication to the principles of Transparency, Accountability, and Performance Excellence (TAPE), which have been the guiding philosophy of the Mele Kyari-led management since 2019.
NNPC Ltd. emphasised that its operations are aligned with global best practices and that it continues to play a critical role in Nigeria’s economic development through its consistent contributions to national revenue and infrastructure development.