Victor EzejaThe Nigeria National Petroleum Company Limited (NNPCL) has denied allegations that it is owing international oil traders about $6.8 billion.
The national oil company also said it is not true that it has not remitted revenues to the Federation Account since January this year.
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Prime Business Africa reports that the NNPCL made the clarification in a statement released Sunday, 18th August by its spokesperson, Olufemi Soneye, while reacting to a media report, which claimed that the company is indebted to international oil traders among other allegations.
The statement read: “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, among other allegations.”
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Soneye explained that in the oil trading business, transactions are carried out on credit, and owing is a normal thing.
According to him, NNPCL through is subsidiary, NNPC Trading, has many credit lines from several traders. “The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis,” Soneye revealed.
Speaking on the allegation of non remittance of revenues to the Federation Account, the NNPCL spokesperson said the company and all its subsidiaries remit their taxes to the Federal Inland Revenue Service (FIRS) regularly.
He claimed that NNPCL is the highest contributor to the tax revenue shared every month by the Federation Account Allocation Committee (FAAC).
“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 fiscalisation 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.”
“That 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 emplaced by the Mele Kyari-led management since stepping into the saddle in 2019.”
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
