The Federation is indebted to NNPC Ltd for a total of N4.207 trillion due to unpaid petrol subsidies, according to Mr. Olufemi Soneye, the Chief Corporate Communications Officer for the Nigerian National Petroleum Company Limited (NNPC).
Simultaneously, NNPC Ltd has an outstanding unremitted revenue of N2.852 trillion, leaving a net balance of N1.355 trillion in favor of NNPC.
Soneye emphasized that NNPC will maintain its collaboration with the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Reconciliation Committee established by President Bola Ahmed Tinubu to investigate and reconcile financial records related to alleged indebtedness to the Federation by both NNPC Ltd. and the Federation Accounts Allocation Committee (FAAC).
This clarification was prompted by calls from a non-governmental organization for an inquiry into funds allegedly owed to the Federation by NNPC.
Soneye asserted that these claims were baseless, particularly considering that NEITI had already dismissed many of the allegations in its 2021 report after engaging with NNPC Ltd.
He also detailed how NNPC Ltd’s financial challenges arose, particularly with the subsidy bill for Premium Motor Spirit (petrol) sales at one-third of its value, which amounted to an average monthly subsidy bill of N400 billion, totaling N3.736 trillion by May 31, 2023.
Regarding gas-to-power debts, the non-payment of NNPC Ltd’s share of upstream joint venture gas supplied to government-owned plants resulted in a Federation indebtedness of N174.07 billion.
The NNPC spokesperson clarified that NNPC Ltd’s net indebtedness to the Federation amounted to N4.207 trillion, while the company was indebted to the Federation in the sum of N2.852 trillion.
The latter primarily comprised outstanding Good and Valuable Consideration (GVC) related to government upstream divestments, royalties, and Petroleum Profit taxes (PPT).
Soneye also highlighted NNPC Ltd’s cooperative relationship with NEITI and its commitment to international standards and ethics, including its recent signing of the United Nations Global Compact on human rights, labor, environment, and anti-corruption, making it the first state-owned oil company to join this global initiative.
He concluded by emphasizing NNPC Ltd’s commitment to delivering value to Nigerians with integrity, guided by its principles of Transparency, Accountability, and Performance Excellence (TAPE) under the leadership of Mele Kyari.
