NNPC Limited Sets the Record Straight on $6.8bn Debt Allegation, Remittances, and Transparency
The Nigerian National Petroleum Company Limited (NNPC Limited) has issued a statement to address recent allegations regarding its financial dealings. The company has categorically denied owing international oil traders $6.8 billion, provided clarification on its remittances to the Federation Account, and reaffirmed its commitment to transparency and accountability.
“We don’t owe the sum of $6.8bn to any international trader(s),” said Olufemi Soneye, Chief Corporate Communications Officer of NNPC Limited. “In the oil trading business, transactions are carried out on credit, and so it is normal to owe at one point or the other. But NNPC Limited, 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.”
Regarding remittances to the Federation Account, Soneye stated, “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 Limited is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC).”
NNPC Ltd. also emphasized its commitment to transparency, saying, “We are not averse to inquiries by the media into issues on and around our operations before dissemination to the public… We will always gladly take the opportunities to state the facts of the subject matter(s).” This commitment aligns with the company’s Transparency, Accountability, and Performance Excellence (TAPE) philosophy.
