The Federation owes NNPC N4.1tn, NNPC owes N2.8tn to Federal Government – NNPCL

The Nigerian National Petroleum Company Limited (NNPCL) stated on Tuesday that the federal government’s outstanding N1.3 trillion debt to NNPCL has nothing to do with the payment of dividend to the government.
The information came to light just before the interagency committee meeting that President Bola Tinubu had scheduled to try to resolve the continuing debt issue, according to Punch.
The national oil company stated in June of this year that it expected the Federation Account to refund it for a debt owing by the Federal Government in the amount of around N1.3 trillion.
The NNPCL was accused of being indebted to the Federal Government to the tune of about N2.8 trillion, but the oil company countered that the Federal Government should first pay back almost N4.1 trillion for its unresolved outstanding claims for subsidies on petroleum products imports, supplies, and distribution on behalf of the government.
“The Federation owes NNPC almost N4.1tn and NNPC owes about N2.8tn to the Federal Government.
“So, they should actually give us a cheque for the debt of N1.3tn they owe NNPC Limited,” a senior official of the company had reportedly stated recently in Abuja, as the inter-agency committee constituted by the President moved to resolve the matter.
Nevertheless, the NNPCL recently reported that it had paid the Federal Government a dividend and Production Sharing Contract earnings of roughly N123 billion in June, notwithstanding the Federal Government’s debt to the firm.
“NNPC has remitted N123bn (N81bn as monthly interim dividend and N42bn as 40 per cent PSC profit oil) in addition to compliance on payment of royalties and taxes.
“This clearly shows that the company under the leadership of Mallam Mele Kyari is moving in a positive trajectory as enshrined in the PIA (Petroleum Industry Act),” the company’s Chief Financial Officer, Umar Ajiya, stated in a chat with journalists.
The oil corporation declined to comment when our reporter phoned it and asked if it had begun to withhold any of the N1.3 trillion that the Federal Government owed it because it had just given the government a dividend of N123 billion.
Garba-Deen Muhammad, NNPCL’s Chief Corporate Communications Officer, continued by stating that the federal government’s N1.3 trillion debt to the national oil company had nothing to do with the dividend payment.
“Dividend payment is on projected profit and has nothing to do with the outstanding N1.3tn owed to the NNPC Ltd,” he stated in a brief reply to our correspondent.

Source: Allnews Nigeria

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