The Nigerian National Petroleum Company Limited (NNPC Ltd.) has addressed recent media reports alleging the company owes international oil traders $6.8 billion and has failed to remit revenues to the Federation Account since January. The company, through its Chief Corporate Communications Officer, Olufemi Soneye, issued a statement refuting the claims and providing clarifications.
According to the NNPC Ltd., the claim of a $6.8 billion debt is incorrect. While acknowledging that oil trading transactions are commonly conducted on credit, the company stressed that it does not owe such an amount. “Transactions in the oil business are typically carried out on credit, but we manage our obligations through our subsidiary, NNPC Trading, on a first-in-first-out (FIFO) basis,” Soneye explained. He further emphasized that the company maintains open credit lines with several traders and has been meeting its obligations.
Regarding allegations of non-remittance to the Federation Account since January, NNPC Ltd. clarified that both the company and its subsidiaries regularly remit taxes to the Federal Inland Revenue Service (FIRS). In addition to tax remittances, the company also makes payments under the Road Investment Tax Credit Scheme to support road infrastructure development. “NNPC Ltd. remains the largest contributor to tax revenue shared monthly at the Federation Account Allocation Committee (FAAC),” the statement noted.
On issues concerning the fiscalization of imported petroleum products, NNPC Ltd. affirmed that it does not play a regulatory role. Instead, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is responsible for such matters. The regulatory body operates independently and is not under the control of NNPC Ltd.
NNPC Ltd. also reiterated its commitment to transparency and accountability, stressing that the media is always welcome to inquire about its operations before disseminating reports. “We are open to addressing any inquiries in line with our Transparency, Accountability, and Performance Excellence (TAPE) philosophy,” Soneye stated, referring to the policy framework established under the leadership of Mele Kyari since 2019.
The company remains committed to upholding its transparency standards while contributing significantly to Nigeria’s economic development.
