•••Clarifies federation account remittances
By Suleiman Mustapha
The Nigerian National Petroleum Company Limited (NNPC Ltd.) on Sunday, debunked a media report, alleging the company owes international oil traders $6.8 billion and has failed to remit revenues to the Federation Account since January.
The Chief Corporate Communications Officer of the company, Olufemi Soneye, in a statement explained that the $6.8 billion debt claim is incorrect.
He however acknowledged that oil trading transactions are commonly conducted on credit, but company does not owe such an amount.
Soneye said, “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,”
He further emphasized that the company maintains open credit lines with several traders and has been meeting its obligations.
On 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).
He further said, “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).”
On issues concerning the fiscalization of imported petroleum products, he said that “NNPC Ltd. 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.
“The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to a media report that the company is indebted to international oil traders to the tune of $6.8bn and that it has not remitted revenues to the Federation Account since January.
“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.
He said that the company is committed to upholding its transparency standards while contributing significantly to Nigeria’s economic development.
