The Nigerian National Petroleum Company Limited (NNPC Ltd.) has responded to recent media reports claiming the company owes $6.8 billion to international oil traders and has failed to remit revenues to the Federation Account since January.
In a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, NNPC Ltd. clarified that it does not have a $6.8 billion debt with any international traders.
The company explained that transactions in the oil trading sector are commonly conducted on credit, and it manages multiple open trade credit lines with various traders.
NNPC Ltd. assures that it settles its obligations on a first-in-first-out (FIFO) basis.
The company also addressed claims regarding Federation Account remittances, stating that it has not neglected its financial obligations.
“NNPC Ltd. and its subsidiaries regularly remit taxes to the Federal Inland Revenue Service (FIRS) and make payments under the Road Investment Tax Credit Scheme”, it said, emphasizing that it remains the largest contributor to the tax revenue allocated monthly at the Federation Account Allocation Committee (FAAC).
Regarding the regulation of the quality and quantity of imported petroleum products, NNPC Ltd. clarified that it is not responsible for this oversight.
“The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the independent regulatory body in charge of these issues,” the statement said.
NNPC Ltd. also reaffirmed its commitment to transparency and open communication with the media.
The company highlighted its adherence to the Transparency, Accountability, and Performance Excellence (TAPE) philosophy introduced by the Mele Kyari-led management in 2019.