The Nigeria National Petroleum Company Ltd (NNPCL) has debunked reports in the media that it owes international oil traders up to $6.8 billion and that it has not remitted any money to the federation account since January of the year.
The company disclosed this in a statement signed by its Chief Corporate Communications Manager, Olufemi Soneye where it stated that it has regularly paid its taxes to the Federal Inland Revenue Service (FIRS).
According to the statement, the NNPCL explained that since the oil trading business is carried out on credit, it is normal for the NNPCL to owe at one time or the other.
However, it stated that its subsidiaries are paying up their obligation on a first-in-first-out (FIFO) basis.
It further explained that the NNPCL and its subsidiaries have regularly paid their taxes to the FIRS coupled with the road Company Income Tax (CIT) under the Road Investment Tax Credit Scheme.
It stated that the NNPCL is the largest contributor to the federal allocation shared every month.
The statement reads: “That NNPC Ltd. does not owe the sum of $6.8bn to any international trader(s). In the oil trading business, transactions are carried out on credit, so it is normal to owe at one point or the other. But NNPC Ltd., through its subsidiary, NNPC Trading, has many open trade credit lines from several traders. The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis.”
“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).”
NMDPRA is in charge of the quality and quantity of petroleum products
- NNPCL stated that it has no involvement in the quality or quantity assessment of imported petroleum products, as it is not a regulatory body.
- The company clarified that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the independent agency responsible for these matters and does not report to NNPCL.
- The company emphasized that it is always willing to provide the facts on any subject matter, aligning with its commitment to transparency,
- Accountability, and Performance Excellence (TAPE) philosophy was established by the Mele Kyari-led management in 2019.
