By Enajomo Odafe
The recent vicious and unprovoked attack on the Nigerian National Petroleum Company Limited (NNPCL) by yet to be identified individuals is a needless distraction. Unknown forces had recently claimed that the national oil company was in debt to the tune of $6.8 billion. Besides, they also claimed that the NNPCL has refused to pay statutory remittances into the Federation Account.
The import of the allegation is that the NNPCL has indirectly made it impossible for both the national and sub national governments across the country to function optimally and perform their obligations to the people because the money that could have gone into the monthly distributable pool had been withheld by the NNPCL.
It beats one’s imagination that a faceless group could just cook up figures and bandied the same around, claiming that the NNPCL is owing such to international oil traders. Only stark ignorance of the workings of the operations of the national oil company could lead anyone to manufacture and peddle such unfounded lies.
But in a measured and matter of fact response to the allegations, accusing the NNPCL of lacking in transparency and rather conducting its businesses in secrecy, the NNPCL categorically debunked the charges and established beyond doubt that in its everyday dealings with both government or corporate bodies, it has upheld the principles of transparency and accountability without pandering to the whims and caprices of anyone or group.
Referring in particular to its financial dealings and remittances to the Federation Account, the NNPCL said the criticisms not only lack merit but are essentially designed to cause distractions and hate towards it from Nigerians.
The NNPCL also debunked allegations that it is indebted to the tune of $6.8 billion to international oil traders and has failed to remit revenues since January to the Federation account.
A statement released by the Chief Corporate Communications Officer, Olufemi Soneye, addressed the allegations pouring cold water on them as he exposed the ignorance of those behind the attacks with the truth. In the statement, the national oil company clarified that while the oil trading business involves credit transactions, NNPCL, through its subsidiary NNPC Trading, maintains active trading credit lines and consistently settles invoices on a first-in-first-out (FIFO) basis
NNPCL also responded to the accusation of non-remittance, stating that it has been regularly paying taxes to the Federal Inland Revenue Service (FIRS) and making significant contributions under the Road Investment Tax Credit Scheme contrary to the base stories that were peddled by those who fabricated them.
The company reiterated its role as the largest contributor to the tax revenues distributed by the Federation Account Allocation Committee (FAAC) each month. The NNPCL said that it is not responsible for the quality and quantity visualization of imported petroleum products. This responsibility lies with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), an independent regulatory body.
The national oil company reaffirmed its commitment to transparency and accountability and urged the media to verify information before publication. However, it stated that its subsidiaries are paying up their obligation on a first-in-first-out (FIFO) basis.
The statement reads: “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, so it is normal to owe at one point or the other. 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.
“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). NMDPRA is in charge of the quality and quantity of petroleum products.”
The NNPCL stated that it has no involvement in the quality or quantity assessment of imported petroleum products, as it is not a regulatory body. The company insisted that the NMDPRA is the independent agency responsible for these matters and does not report to NNPCL.
The company emphasized that it is always willing to provide the facts on any subject matter, aligning with its commitment to Transparency, Accountability, and Performance Excellence (TAPE) philosophy which was established by the Mele Kyari-led management in 2019. Analysts have pointed at the scarcity of petroleum products, especially premium motor spirit otherwise called petrol which enters the sixth week, as the ready catalyst for the allegations.
But again, the NNPCL has made it abundantly clear that “distribution challenges” rather than outright lack of the product is to blame for the scarcity. The current petrol scarcity is the third in 2024. It began early July with NNPC attributing it to logistics challenges faced in the distribution of the product from mother vessel to daughter vessels.
The company had said: “The NNPC Ltd wishes to state that the fuel queues seen in the FCT and some parts of the country were as a result of disruption of ship-to-ship (STS) transfer of Premium Motor Spirit (PMS), also known as petrol, between Mother Vessels and Daughter Vessels resulting from recent thunderstorm. “The adverse weather condition has also affected berthing at jetties, truck load-outs and transportation of products to filling stations, causing a disruption in station supply logistics.
“The NNPC Ltd also states that due to flammability of petroleum products and in compliance with the Nigerian Meteorological Agency (NIMET) regulations, it was impossible to load petrol during rainstorms and lightning.” But with the shortage not showing any sign of improvement, the national oil company in a two paragraph statement on Sunday said it regretted the situation.
Soneye said: “The NNPC Ltd regrets the tightness in fuel supply witnessed in some parts of Lagos and the FCT, which is as a result of distribution challenges. “The Company further urges motorists to shun panic buying as it is working round the clock with relevant stakeholders to restore normalcy”.
Let it be stated, however, that making outlandish and unsubstantiated claims shamelessly by a faceless group would not help anyone. At best it will only cast aspersion on the image of the country and her people. And what’s more, if the national oil company is being tagged with corruption charges, the possibility of it having negative effect on DFI for the country is not in doubt. It is on this premise that entities seeking cheap popularity must be circumspect and patriotic in what they attack all in the name of activism.