The Nigeria National Petroleum Company Ltd. (NNPCL) has refuted media claims that it has not sent any money to the federation account since January of this year and that it owes up to $6.8 billion to foreign oil merchants.
The business revealed this in a statement that was signed by Olufemi Soneye, Chief Corporate Communications Manager, and said that it has been paying taxes to the Federal Inland Revenue Service (FIRS) on a regular basis.
As stated in the statement, the NNPCL clarified that it is typical for the NNPCL to owe money at some point because the oil trading industry is conducted on credit.
On the other hand, it said that its subsidiaries are fulfilling their debt using the first-in, first-out (FIFO) method.
It further explained that the NNPCL and its subsidiaries have regularly paid their taxes to the FIRS coupled with the road Company Income Tax (CIT) under the Road Investment Tax Credit Scheme.
It stated that the NNPCL is the largest contributor to the federal allocation shared every month.
The statement reads: “That NNPC Ltd. does not owe the sum of $6.8bn 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.”
“It is not correct to say that NNPC Ltd. has not remitted any money to the Federation Account since January. 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 to road contractors under the Road Investment Tax Credit Scheme. In all, NNPC Ltd. is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC).”
