$6.8bn Debt: NNPCL Debunks Media Report

The Nigerian National Petroleum Company Limited, NNPCL, on Sunday debunked media reports that it is owing some international oil traders the sum of $6.8bn.

The company also stated it is not true that alongside its subsidiaries, it has not paid all remittances into the Federation Account since January 2024.

NNPCL made the clarification in a statement issued by its Chief Corporate Communications Officer, Olufemi Soneye.

 NNPCL noted that it is not currently owing the said sum of money to any international oil trader or traders, maintaining however, that it is normal to owe in oil trading businesses and other transactions.

"...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."

While debunking the allegation that the company has also not remitted any money into the Federation Account, Soneye pointed out that both the NNPCL and all its subsidiaries have remitted their taxes to the Federal Inland Revenue Service, Firs as at when due.

"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)"

Speaking further, Soneye explained that NNPCL does not play any role in ascertaining the quality/quantity fiscalization of imported petroleum products as the role is the responsibility of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA. "On the issue of quality/quantity fiscalization of imported petroleum products, 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