August 19, (THEWILL) – Amid the controversy surrounding the importation of high sulphur refined petroleum products into the country from refineries in Russia and blending facilities in Malta, the Nigerian National Petroleum Company Limited (NNPCL), on Sunday, subtly washed its hands off the shady operation, saying it has no role in regulating the importation of petroleum products.
The company’s Chief Corporate Communications Officer, Olufemi Soneye, said the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is the government agency charged with ensuring that refined petroleum products sold in the country meet set requirements. “The regulatory body operates independently and is not under the control of NNPC Ltd,” it said.
This is the NNPCL’s first official reaction to damaging news reports over the weekend which detailed how Matrix Energy, an independent oil player and a major beneficiary of the company’s crude contract tenders, imported cargoes of high sulphur refined petroleum products from Russia and Malta into the country.
President of Dangote Group, Aliko Dangote, had earlier alleged that a cabal in the oil sector has been frustrating efforts to restart Nigerian crude oil refineries and had instead commissioned blending plants and terminals in Malta to blend poor quality fuels for importation into the country. Widely available records also detailed how Nigeria’s petroleum importation from Malta surged significantly to $2.8bn this year as against zero between 2017 and 2022, and a mere $13.32m in 2016.
The NMDPRA could not be reached for comment as at press time.
Meanwhile, the NNPCL has also refuted reports that it owes its international trading partners $6.8bn, while also denying that it has not remitted funds into the Federation Account this year even though verifiable records prove it did not remit cash to the federation in 2022 and 2023.
“The 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),” the company’s spokesman said.
In a related development, fuel shortages have continued nationwide with the NNPCL attributing the problem to “distribution challenges” related to the transfer of products from mother vessels to smaller vessels. THEWILL reports that long fuel lines returned to filling stations in July.
“The NNPC Ltd. wishes to state that the fuel queues seen in the FCT and some parts of the country were as a result of disruption of ship-to-ship (STS) transfer of Premium Motor Spirit (PMS), also known as petrol, between Mother Vessels and Daughter Vessels resulting from recent thunderstorm.
“The adverse weather condition has also affected berthing at jetties, truck load-outs and transportation of products to filling stations, causing a disruption in station supply logistics.
“The NNPC Ltd also states that due to flammability of petroleum products and in compliance with the Nigerian Meteorological Agency (NIMET) regulations, it was impossible to load petrol during rainstorms and lightning,” the statement said.
The company also apologised for the difficulties and warned users against panic buying of petrol in jerry cans.
“The NNPC Ltd regrets the tightness in fuel supply witnessed in some parts of Lagos and the FCT, which is as a result of distribution challenges.
“The Company further urges motorists to shun panic buying as it is working round the clock with relevant stakeholders to restore normalcy,” it added.
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