The Nigerian National Petroleum Company Limited (NNPCL) has said it will collaborate with the Nigeria Extractive Industries Transparency Initiative (NEITI) and all relevant stakeholders in the Reconciliation Committee set up by President Bola Tinubu to investigate, review and reconcile the financial records on alleged indebtedness to the Federation by both NNPC Limited and Federation Accounts Allocation Committee, FAAC.
This is coming on the heels of calls by a non-governmental organization for a probe of several monies allegedly owed to the Federation by the national oil company.
NNPC Ltd in a statement issued by its Chief Corporate Communications Officer,
Olufemi Soneye on Monday says the claims by the NGO were baseless, considering the fact that NEITI itself had dismissed many of the allegations in the said 2021 report, following a series of engagements with NNPC Ltd.
NNPC Ltd noted that at the outset of President Bola Tinubu’s administration, it was made to sell Premium Motor Spirit (PMS) imported into the country at one-third of its value, a development that gave rise to an average of N400bn monthly subsidy bill, which subsequently put a strain on its revenues and finances.
NNPC Ltd. further explained that, “that subsidy bill accumulated to up to N3.736 trillion as of May 31st, 2023.”
With respect to gas-to-power debts, the non-payment of NNPCL’s share of upstream joint venture gas supplied to the government-owned plants had led to the accumulation of indebtedness of N174.07 billion by the Federation.
Similarly, the receivables due from the Federation to NNPC Exploration & Production Limited (NEPL) as of 31st May 2023 amount to $712 million (equivalent to N309.07 billion at N434.08/US$1) for revenues not remitted to NEPL but paid into the Federation account.
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While the Federation owed NNPCL the sum of N4.207 trillion as net indebtedness, the company was only indebted to the Federation in the sum of N2.852 trillion, made up mainly of outstanding Good and Valuable Consideration (GVC) in respect of government upstream divestments, royalties and Petroleum Profit Taxes (PPT).
The NNPCL statement notes that over the years, its relationship with NEITI has been very cordial, as seen in August 2020 when it became an EITI supporting company, joining a group of over 65 extractive companies, state-owned enterprises (SOEs), commodity traders, financial institutions and industry partners committed to observing the EITI’s supporting company expectations.
Indeed, aside being a signatory to several EITI’s global ethics and standards, NNPC Ltd had on the sidelines of the United Nation’s General Assembly (UNGA) in Washington DC, in September this year, signed up to the United Nations Global Compact on human rights, labour, environment, and anti-corruption, thereby becoming the first state-owned oil company to join the global initiative.
The company said its books remain open to all stakeholders and it remains committed to delivering value to Nigerians with integrity as espoused in principles of Transparency, Accountability and Performance Excellence (TAPE), which it says is the bulwark of the Mele Kyari leadership of the company.
(Editor: Ken Eseni)