The Nigerian National Petroleum Company Limited (NNPCL) has firmly denied claims that it owes $6.8 billion to international oil traders.
The company also clarified that it has been consistently remitting taxes to the Federal Inland Revenue Service (FIRS), countering reports that suggested otherwise.
In a statement issued on Sunday by the company’s spokesperson, Olufemi Soneye, NNPCL addressed recent media reports alleging that the firm owes $6.8 billion due to fuel importation and has failed to remit revenues to the Federation Account Allocation Committee (FAAC) since January.
NNPCL dismissed these claims, providing detailed explanations. The company clarified that it does not owe $6.8 billion to any international traders. It explained that in the oil trading business, transactions are often conducted on credit, making it common to have outstanding payments at various times. However, NNPCL assured that it is fulfilling its financial obligations through its subsidiary, NNPC Trading, by settling invoices on a first-in-first-out (FIFO) basis.
Regarding the allegations of non-remittance to the Federation Account, NNPCL emphasized that it has been regularly paying taxes to the FIRS. The company noted that it also contributes to the Road Investment Tax Credit Scheme through the payment of Corporate Income Tax (CIT) to road contractors. NNPCL highlighted its status as the largest contributor to the tax revenue shared monthly at FAAC.
On the issue of quality and quantity assessment of imported petroleum products, NNPCL clarified that it has no regulatory role in this matter. The company stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), an independent regulatory agency, is responsible for overseeing such matters.
NNPCL reaffirmed its commitment to transparency and accountability, expressing its willingness to engage with the media on any issues related to its operations. The company stated that this approach aligns with the Transparency, Accountability, and Performance Excellence (TAPE) philosophy introduced by the Mele Kyari-led management since 2019.
