NNPCL Denies $6.8 Billion Debt Allegations, Clarifies Revenue Remittances and Trading Practices

The Nigerian National Petroleum Company Limited (NNPCL) has refuted recent media reports claiming the company owes international oil traders $6.8 billion and has failed to remit revenues to the Federation Account since January. In a statement released from its Abuja headquarters, NNPCL clarified that it does not owe such a substantial sum to any international traders. The company explained that in the oil trading industry, it is standard practice to conduct transactions on credit, meaning that owing money at certain points is normal. However, NNPCL emphasized that it, through its subsidiary NNPC Trading, maintains several open trade credit lines and consistently meets its payment obligations on a first-in-first-out (FIFO) basis.

Addressing the allegation of failing to remit funds to the Federation Account, NNPCL stated that both the company and its subsidiaries regularly pay taxes to the Federal Inland Revenue Service (FIRS). In addition to these payments, NNPCL also contributes to the Road Investment Tax Credit Scheme by paying Corporate Income Tax (CIT) to road contractors. The company underscored that it is the largest contributor to the tax revenue distributed monthly by the Federation Account Allocation Committee (FAAC).

NNPCL also clarified its role regarding the quality and quantity checks of imported petroleum products, stating that it does not serve as a regulator in this regard. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the independent agency responsible for these matters and does not report to NNPCL.

The company reaffirmed its commitment to transparency and accountability and encouraged media outlets to verify information with them before publication. NNPCL stated that it welcomes inquiries into its operations and is always ready to provide accurate information. This stance aligns with the company’s ongoing dedication to the Transparency, Accountability, and Performance Excellence (TAPE) philosophy, which has been a hallmark of the Mele Kyari-led management since 2019.

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