The Nigerian National Petroleum Company Limited has denied claims that it owes $6.8 billion to international oil traders.
In a statement released on Sunday, August 18, the company’s Chief Corporate Communications Officer, Olufemi Soneye, responded to the allegations.
Soneye addressed the media reports, saying, “NNPC Ltd. does not owe the sum of $6.8bn to any international trader(s).” He explained that in the oil trading business, transactions are often done on credit, so it is normal for there to be some debt at times.
He further clarified that NNPC Ltd., through its subsidiary, NNPC Trading, has many open trade credit lines with various traders. “The company is paying its obligations of related invoices on a first-in-first-out basis,” Soneye added.
Regarding accusations that NNPC Ltd. has not remitted revenues to the Federation Account since January, Soneye stated, “It is not correct to say that NNPC Ltd. has not remitted any money to the Federation Account since January.”
He emphasized that NNPC Ltd. and its subsidiaries regularly remit their taxes to the Federal Inland Revenue Service. He also noted that NNPC Ltd. is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee.
Soneye addressed concerns about the quality and quantity of imported petroleum products, stating, “NNPC Ltd. has no role whatsoever as it is not a regulator. The Nigerian Midstream and Downstream Petroleum Regulatory Authority is the relevant regulatory agency in charge of such issues.”
He concluded by reaffirming NNPCL’s commitment to transparency, saying, “NNPC Ltd. is not averse to inquiries by the media into issues on and around its operations before dissemination to the public. This is in line with the company’s commitment to the Transparency, Accountability, and Performance Excellence philosophy as emplaced by the Mele Kyari-led management since stepping into the saddle in 2019.”
