The Nigerian National Petroleum Company Limited (NNPC Ltd.) has issued a firm rebuttal to recent media reports suggesting that the company is burdened with a $6.8 billion debt to international oil traders and has failed to remit revenues to the Federation Account since January 2024.
In its official response, NNPC Ltd. has clarified these claims, dismissing them as misleading and offering a comprehensive explanation to set the record straight.
NNPC Ltd. has categorically denied allegations that it owes $6.8 billion to international oil traders. According to the company, the oil trading industry typically operates on credit, with temporary balances due as part of routine business activities.
NNPC Ltd, through its subsidiary, NNPC Trading, maintains numerous trade credit lines with a wide network of international partners. Payments are handled through a structured, first-in-first-out (FIFO) process, ensuring that invoices are settled in a timely manner. The company has emphasized that it remains financially sound and does not have any outstanding debt as alleged in the media.
Addressing claims of non-remittance since January 2024, NNPC Ltd. clarified that it regularly fulfills its financial obligations to the Federation Account. The company continues to remit taxes through the Federal Inland Revenue Service (FIRS), including payments under the Road Investment Tax Credit Scheme, which is designed to support critical infrastructure projects across the nation.
Additionally, NNPC Ltd. maintains its position as the largest contributor to the tax revenues shared during the Federation Account Allocation Committee (FAAC) meetings, reaffirming its pivotal role in national revenue generation.
Regarding the importation of petroleum products, NNPC Ltd. highlighted that it does not have a regulatory role in the fiscalization of quality and quantity during these processes.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the sole body responsible for such oversight. As an independent regulator, NMDPRA does not report to NNPC Ltd., thereby separating the company from any involvement in regulatory activities related to the importation of petroleum products.
NNPC Ltd. reiterated its commitment to transparency and accountability, urging media professionals to engage with the company before publishing reports that concern its operations.
The company also emphasized the importance of accurate and factual reporting, which aligns with its management philosophy centered on Transparency, Accountability, and Performance Excellence (TAPE), as championed by Group CEO Mele Kyari since 2019. NNPC Ltd. remains committed to building public trust and ensuring its activities are presented in their proper context.
In closing, NNPC Ltd. reaffirmed that it is not indebted as claimed and continues to uphold its obligations both to the nation and to its international partners. The company remains unwavering in its dedication to transparency, accountability, and performance excellence in all its operations.
The press release was signed and submitted by Mr Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd.
