NNPCL Refutes $6.8 Billion Debt and Non-Remittance of Funds

The Nigerian National Petroleum Company Limited, NNPCL has strongly denied media reports of a debt of $6.8b to international oil traders and failing to remit revenue to the Federation Account since January.

In a press release issued by Olufemi Soneye, Chief Corporate Communications Officer of NNPCL, he said the claims of the debt were untrue.

Clarifications on Allegations:

1. No $6.8 Billion Debt to Traders: NNPC Ltd. asserted that it does not owe $6.8 billion to any international oil trader. The company explained that in the oil trading business, transactions are typically conducted on credit, making it normal to have outstanding payments at any given time. However, NNPC Ltd., through its subsidiary NNPC Trading, has secured numerous trade credit lines from various traders and is actively fulfilling its financial obligations on a first-in-first-out (FIFO) basis.
2. Consistent Remittance to Federation Account: The press release also addressed claims that NNPC Ltd. has not remitted any funds to the Federation Account since January. NNPC Ltd. stated that both it and its subsidiaries consistently remit their taxes to the Federal Inland Revenue Service (FIRS). Additionally, the company makes Corporate Income Tax (CIT) payments to road contractors under the Road Investment Tax Credit Scheme. NNPC Ltd. emphasized that it remains the largest contributor to the tax revenue disbursed monthly at the Federation Account Allocation Committee (FAAC) meetings.
3. No Role in Petroleum Product Fiscalization: The company further clarified that it has no involvement in the quality and quantity fiscalization of imported petroleum products. This responsibility lies with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), an independent regulatory agency that does not report to NNPC Ltd.
4. Commitment to Transparency: NNPC Ltd. reaffirmed its commitment to transparency and accountability, encouraging media inquiries into its operations. The company emphasized that it is always willing to provide accurate information to the public, in line with its Transparency, Accountability, and Performance Excellence (TAPE) philosophy, which has been a cornerstone of its management approach under the leadership of Mele Kyari since 2019.

The press release, which was posted on NNPC Ltd.’s official X account, serves as a formal response to the allegations, aiming to set the record straight and reassure stakeholders of the company’s ongoing commitment to financial responsibility and transparency.
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