The Chief Communication Officer of the Nigerian National Petroleum Corporation (NNPC) Limited, Olufemi Soneye, has revealed that the national oil firm is the largest contributor to monthly tax revenue to the federation account.
There have been reports that NNPC has been failing to remit to the federation account due to its debt obligations following the removal of fuel subsidy by President Tinubu.
In response, the oil company’s spokesperson stated that NNPC remains the largest contributor to monthly tax revenue to the federation account among all revenue agencies.
“NNPC Ltd is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC),” Soneye stated.
NNPC not owing $6.8 billion to oil traders
Nairametrics previously reported that the NNPC refuted claims in the media alleging it owes international oil traders up to $6.8 billion and has not remitted any funds to the federation account since January.
The company made this clarification in a statement signed by its Chief Corporate Communications Manager, Olufemi Soneye, emphasizing that it has consistently paid its taxes to the Federal Inland Revenue Service (FIRS).
In the statement, NNPCL explained that given that oil trading is typically conducted on credit, it is common for the company to have outstanding payments at various times.
“That NNPC Ltd. Does not owe the sum of $6.8 billion 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,” NNPC said.
What you should know
Nairametrics reported that in July, the Federation Accounts Allocation Committee (FAAC) distributed a total of N1.358 trillion among the Federal Government, States, and Local Government Councils (LGCs).
The distributable funds included N161.593 billion in statutory revenue, N582.307 billion from Value Added Tax (VAT), N18.818 billion from the Electronic Money Transfer Levy (EMTL), N581.710 billion in exchange difference revenue, and N13.647 billion from solid minerals.
The report also noted significant increases in revenue streams such as oil and gas royalties and Petroleum Profit Tax (PPT) during the month.
Additionally, there was substantial growth in other revenue sources like VAT, import duty, Ecological and Mining Tax Levies (EMTL), and the Common External Tariff (CET) levies.
The revenue is shared between the federal government, State government and the local government area, with 20.6% allocation from the federation account to local government areas, among other reliefs.
