NNPC sets record straight, debunks claims of non-remittance to federation account

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The Nigerian National Petroleum Corporation (NNPC) Limited has refuted allegations of failing to remit funds to the federation account, stating that it remains the largest contributor to monthly tax revenue. This comes amidst reports of the corporation’s debt obligations following the removal of fuel subsidies by President Tinubu.

Olufemi Soneye, Chief Communication Officer of NNPC, clarified that the corporation consistently pays its taxes to the Federal Inland Revenue Service (FIRS) and is the largest contributor to the Federation Account Allocation Committee (FAAC).

“NNPC Ltd is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC),” he said.

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NNPC also addressed claims of owing international oil traders $6.8 billion, stating that oil trading transactions are typically conducted on credit, resulting in outstanding payments at various times. The corporation emphasized that it is paying its obligations on a first-in-first-out (FIFO) basis.

“That NNPC Ltd. Does not owe the sum of $6.8 billion to any international trader(s). 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,” NNPC said.

This revelation raises questions about the accuracy of previous reports and highlights the need for transparent communication between NNPC and the public. As the largest contributor to the federation account, NNPC’s financial dealings have significant implications for the country’s economy.

Tags: Nigerian National Petroleum Corporation, NNPC, Mele Kyari, Oil Sector, Nigeria, Bola Tinubu, FIRS, FAAC