NNPC denies owing foreign oil traders $6.8bn

The Nigerian National Petroleum Company Limited has denied owing international oil traders $6.8 bn.

The company also refuted claims that it has not remitted funds into the federation account since January.

NNPC Chief Corporate Communications Officer Olufemi Soneye responded to various allegations against the state-owned energy firm in a statement on Sunday.

It was alleged that the NNPC owed some of its suppliers as the sole importer of petrol in Nigeria, though Soneye acknowledged that such transactions are conducted on credit.

“NNPC Ltd does not owe the sum of $6.8 bn to any international trader(s). In the oil trading business, transactions are carried out on credit, so it is normal to have outstanding amounts at certain times. However, NNPC Ltd, through its subsidiary NNPC Trading, maintains many open trade credit lines with several traders. The company is fulfilling its obligations on a first-in-first-out (FIFO) basis,” he stated.

Soneye did not specify the financial obligations that NNPC is currently addressing.

Regarding remittances, he said, “It is incorrect to claim that NNPC Ltd has not remitted any funds to the federation account since January. NNPC Ltd and all its subsidiaries regularly remit their taxes to the Federal Inland Revenue Service. This includes payments of CIT to road contractors under the Road Investment Tax Credit Scheme. Overall, NNPC Ltd is the largest contributor to the tax revenue shared monthly at the Federation Account Allocation Committee.”

Soneye emphasised that NNPC is not a regulator and does not oversee the quality of imported fuel.

“Regarding the quality and quantity verification of imported petroleum products, NNPC Ltd has no role as it is not a regulatory body. The Nigerian Midstream and Downstream Petroleum Regulatory Authority, which is the relevant regulatory agency for such matters, operates independently and does not report to NNPC Ltd,” he noted.

He added that NNPC is open to media inquiries about its operations and will always gladly provide factual information. This is in line with the company’s commitment to Transparency, Accountability, and Performance Excellence (TAPE) as established by the Mele Kyari-led management since 2019.

However, NNPC has yet to respond to inquiries concerning the ongoing fuel scarcity in many cities.