NNPC Refutes Report On $6.8 Billion Indebtedness, Urges Motorists To Desist From Panic Fuel Buying

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has refuted report which alleged that the Company was indebted to international oil traders to the tune of $6.8bn and has not remitted revenues to the Federation Account since January, among other allegations.  

A statement by the NNPC Ltd Chief Corporate Communications Officer, Olufemi Soneye, clarifies saying:
“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, and 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).”

On the issue of quality/quantity fiscalization of imported petroleum products, he explained  that “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. ” 

Further, Mr Soneye said 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).

He maintained that 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.

On another development on fuel supply situation,  NNPC Ltd expressed regrets on the tightness in fuel supply witnessed in some parts of Lagos and the FCT, which is as a result of distribution challenges.

It urges motorists to shun panic buying as it is working round the clock with relevant stakeholders to restore normalcy.