NNPC dismisses $6.8bn debt allegation and insists fulfilling regular tax obligations

The Nigeria National Petroleum Company Limited (NNPC Ltd.) has addressed claims circulating in the media regarding a supposed debt of $6.8 billion owed to international oil traders.

The company categorically denies this allegation, stating that it does not owe such an amount to any international traders.

NNPC Ltd. clarified that credit transactions are standard practice in the oil trading business. It is common for outstanding balances to exist at different times.

However, NNPC Ltd., through its trading subsidiary, NNPC Trading, has numerous open trade credit lines with several traders.

The company is actively meeting its financial obligations by paying invoices on a first-in, first-out (FIFO) basis.

Contrary to reports, NNPC Ltd. Insists that it has consistently remitted funds to the Federation Account, dismissing claims of non-remittance since January.

The company and its subsidiaries regularly fulfill their tax obligations to the Federal Inland Revenue Service (FIRS).

Additionally, NNPC Ltd. contributes to the Road Investment Tax Credit Scheme, further demonstrating its commitment to national development.

As the largest contributor to tax revenue, NNPC Ltd. plays a pivotal role in the monthly revenue allocations shared at the Federation Account Allocation Committee (FAAC).

Addressing concerns about the quality and quantity fiscalization of imported petroleum products, NNPC Ltd. clarified that it has no regulatory role in this process.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the independent body responsible for overseeing these matters and does not report to NNPC Ltd.

NNPC Ltd. encourages media inquiries into its operations, emphasizing its commitment to transparency and accountability.

The company remains open to providing accurate information to the public through various media channels.

This commitment aligns with the Transparency, Accountability, and Performance Excellence (TAPE) initiative championed by Mele Kyari’s management since 2019.