NNPC clarifies revenue projection in letter to AGF not reflection of financial standing

*The Nigerian National Petroleum Corporation has pledged to continue to pursue and observe its cost optimisation process with a view to maximising remittances to the Federation Account Allocation Committee

Alexander Davis | ConsumerConnect

The Nigerian National Petroleum Corporation (NNPC) has explained that the revenue projection contained in the Corporation’s letter to the Accountant-General of the Federation (AGF), and cited in the media pertains only to the Federation revenue stream being managed by it, and not a reflection of the Corporation’s overall financial performance.

Dr. Kennie Obateru, Spokesman of the state oil firm, in a statement Friday, April 30, 2021, said that the clarification became necessary in the light of certain media reports insinuating that the Corporation is in financial dire straits.

The statement noted the NNPC maintains that it is conscious of its role and is doing everything possible to shore up revenues and support the Nigerian Federation at all times.

Dr. Obateru said: “The shortfall will be remedied by the Corporation as it relates only to the Federation revenue stream being managed by the NNPC and does not reflect the overall financial performance of the Corporation.

“The NNPC remains in positive financial trajectory for the period in question.”

The Corporation pledged to continue to pursue and observe its cost optimisation process with a view to maximising remittances to the Federation Account.

The statement recalled the NNPC, in a letter to the Accountant-General of the Federation, titled: “Re: Impact of Hike in Crude Oil Prices on the Deregulated Downstream Sector: Projected Remittance to the Federation Accounts for April to June 2021”, which was inappropriately shared by unscrupulous persons, had projected that it would deduct the sum of N112billion from Oil and Gas proceeds for April 2021, in order to ensure continuous supply of petroleum products to the country and guarantee energy security.

This misrepresentation, according the Corporation, has generated reports of impending revenue shortfalls with dire consequences for the various tiers of government.

NNPC, however, assures that it would continue to meet its financial obligations to the Federation.

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