NNPCL denies report on allegations of allegedly inflated subsidies

The Nigerian National Petroleum Company Limited has refuted media reports that it inflated fuel subsidies by N3.3 trillion.

A report claimed that a forensic audit conducted by an international accounting firm, KPMG, had revealed a significant discrepancy in the fuel subsidy applications submitted by the national oil company.

According to a report by iWitnessLive, the audit revealed that NNPCL had inflated its fuel subsidy claims by a staggering N3.3 trillion. The audit, which will cover the period 2015-2021, aims to verify the authenticity of grant requests.

The report comes several months after NNPCL Group CEO Mele Kyari claimed that the Federal Government still owed NNPCL N2.8 trillion in oil subsidies, which the company had covered through its cash flow.

However, in a statement on Monday by its Director of Corporate Communications, Olufemi Soneye, the NNPC said it never inflated its grant claims from the Federal Government.

The national oil company said all its previous grant applications were verifiable, saying all relevant records and documents had been sent to relevant authorities and agencies for audit.

The statement read: “The Nigerian National Petroleum Company Limited (NNPC Ltd.) notes with dismay a report in a section of the media alleging that it inflated subsidy demands by N3.3 trillion, and wishes to declare that it conducts its activities responsibly and transparently in accordance with international best practices and has at no time inflated its grant applications from the Federal Government.

“All of the company's previous grant applications are verifiable, as relevant files and documents have been sent to the relevant authorities and agencies. NNPC Ltd. is not aware of any audit of its grant applications or the resulting investigation and wishes to state categorically that these two ridiculous allegations are the product of the fevered imagination of journalists and their respective media outlets.

The oil company vows to resist any attempt to drag it into fuel subsidy policy, saying it operates on a commercial basis and in accordance with the Petroleum Industry Act.

The NNPP therefore calls on journalists and media outlets to exercise restraint and verify any information before publication.

He added: “NNPC Ltd. will resist any attempt to drag the company into the apparent policy of fuel subsidy as it currently operates on a commercial basis and within the express provisions of the Petroleum Industry Act (PIA).

“It is recognized that in line with its mantra of Transparency, Accountability and Performance Excellence (TAPE), NNPC Ltd. has, on several occasions, independently invited external auditors to review its books.

“NNPC Ltd. calls on media professionals and media houses to exercise restraint and verify information before publication, in accordance with the ethics of the noble profession of journalism, to avoid misleading the public into error.”