The Nigerian National Petroleum Company Limited (NNPC) has denied recent claims that it inflated fuel subsidy payments by N3.3 trillion. Media reports suggested that a forensic audit by global accounting firm KPMG had found discrepancies in the subsidy claims made by NNPC between 2015 and 2021.
According to iWitnessLive, the audit revealed that NNPC inflated its subsidy claims by a significant amount. This comes months after NNPC’s Group CEO, Mele Kyari, stated that the federal government still owed the company N2.8 trillion for petrol subsidy payments that NNPC had covered using its cash flow.
NNPC responded to these allegations in a statement issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Monday. The company strongly refuted the claims, stating, “The Nigerian National Petroleum Company Limited (NNPC Ltd.) notes with dismay a report in a section of the media alleging that it inflated subsidy claims by N3.3 trillion, and wishes to state that it conducts its businesses accountably and transparently in keeping with international best practices and has, at no time, inflated its subsidy claims with the Federal Government.”
NNPC emphasized that all its subsidy claims are verifiable and that all relevant records and documents have been submitted to the appropriate authorities for audit. “All previous subsidy claims by the Company are verifiable, as relevant records and documents have been sent to relevant authorities and agencies. NNPC Ltd. is neither aware of any audit of its subsidy claims nor the probe ensuing therefrom and wishes to state categorically that both ridiculous claims are products of the febrile imagination of the reporters and their respective media houses,” the statement read.
The company also stated that it operates on a commercial basis and in accordance with the Petroleum Industry Act, and it will resist any attempts to involve it in the politics of fuel subsidy. “NNPC Ltd. will resist any attempt to drag the Company into the apparent politics of fuel subsidy as it currently operates on a commercial basis and the express provisions of the Petroleum Industry Act (PIA).”
NNPC has urged journalists and media houses to verify their information before publication to avoid misleading the public. “It is on record that, in line with its Transparency, Accountability & Performance Excellence (TAPE) mantra, NNPC Ltd. has, on several occasions, independently invited external auditors to review its books. NNPC Ltd. calls on media practitioners and media houses to exercise restraint and verify information before publication in keeping with the ethics of the noble profession of journalism to avoid misleading the public.”
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