Amid Persisting Fuel Scarcity, NNPC Denies Owing International Oil Traders

The Nigerian National Petroleum Company Limited (NNPC Ltd) has denied claims that it owes $6.8 billion to international oil traders. This was in response to a recent media report alleging that the company is in debt and also has not remitted any revenues to the Federation Account since January.

In a statement released on Sunday, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, stated that the company regularly fulfills its financial obligations. Soneye clarified that it is standard practice in the oil trading business to have outstanding obligations, but insisted that the company does not owe the reported amount.

“NNPC Ltd does not owe the sum of $6.8bn to any international trader(s), 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,” the statement partly reads.

The company also dismissed claims that it has not remitted any funds to the Federation Account since January, stating that it and its subsidiaries regularly pay taxes to the Federal Inland Revenue Service (FIRS). Soneye added that NNPC Ltd is the largest contributor to the tax revenue shared monthly at the Federation Account Allocation Committee (FAAC).

However, despite these reassurances, fuel scarcity has returned to major Nigerian cities like Lagos and Abuja. Vehicles were seen queuing at the few fueling stations selling on Sunday and Monday. Some motorists were reportedly waiting in front of closed NNPC-owned stations in the hope that they would open. Since the fuel subsidy’s removal in May 2023, fuel shortages have been a persistent challenge to the citizenry. NNPC has previously cited supply disruptions and weather-related issues as reasons for the scarcity, but sources quoted by Nairametrics alleged that the company is struggling to settle its debts with oil trading partners, adding to the challenges in ensuring a steady fuel supply.

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