NNPC clarifies $6.8bn debt with international oil traders
NNPC
NNPC clarifies $6.8bn debt with international oil traders
Abdullateef Fowewe
The Nigeria National Petroleum Company Limited has disavowed reports that it owes international oil traders up to $6.8 billion, and that it has not remitted any money to the federation account since January of the year.
NNPC in a statement on Sunday by its Chief Corporate Communications Manager, Olufemi Soneye, stated that it has regularly paid its taxes to the Federal Inland Revenue Service.
NNPC emphasised that it is normal to owe at one point or the other since the oil trading business transactions are carried out on credit mentioning that the company through its subsidiary, NNPC Trading, has many open trade credit lines from several traders and the company is paying its obligations of related invoices on a first-in-first-out basis.
The statement clarified further that, “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).
“On the issue of quality /quantity fiscalization of imported petroleum products, NNPC Ltd. has no role whatsoever as it is not a regulator. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which is the relevant regulatory agency in charge of such issues, is an independent body and does not report to the NNPC Ltd.
“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 placed by the Mele Kyari-led management since stepping into the saddle in 2019.”
However, on August 8, Dailyeconomy reported that the NNPC firmly denied the allegations of economic sabotage, noting that it has not breached any laws guiding its dealings with partners.
