The Nigeria National Petroleum Company Limited (NNPCL) has firmly denied reports claiming it owes international oil traders a staggering $6.8 billion and has not made any financial contributions to the Federation Account since January this year.
The company addressed these allegations in a statement issued by its Chief Corporate Communications Manager, Olufemi Soneye, clarifying its financial dealings and tax contributions.
In the statement, NNPCL acknowledged that while it operates in an industry where transactions are often conducted on credit, it is untrue that it has an outstanding debt of $6.8 billion.
“In the oil trading business, transactions are carried out on credit, 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,” the statement explained.
NNPCL reiterated that it remains committed to fulfilling its financial responsibilities and has been actively managing its obligations. The company pointed out that it follows a structured payment process, ensuring that outstanding invoices are settled promptly and in the order they were received.
Furthermore, the NNPCL strongly refuted the claim that it has failed to remit any funds to the Federation Account since the beginning of the year. The company highlighted that it and its subsidiaries regularly pay their taxes to the Federal Inland Revenue Service (FIRS).
“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 [Company Income Tax] to road contractors under the Road Investment Tax Credit Scheme,” the statement read.
NNPCL also emphasized its vital role in contributing to the federal allocation shared every month, making it the largest contributor to the Federation Account Allocation Committee (FAAC). The company stated, “In all, NNPC Ltd. is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC).”