We Are Not Broke - NNPC

ABUJA, JULY 14, (THEWILL) - The management of the Nigerian National Petroleum Corporation (NNPC) on Tuesday countered a statement credited to the Minister of State for Finance, Mr. Remi Babalola that the NNPC is insolvent.

Group General Manger, Group Public Affairs of the Corporation Dr. Levi Ajuonuma, in statement made available to THEWILL in Abuja stated that the Corporation was capable of meeting its financial obligations to its partners and stakeholders.

"We cannot be classified as insolvent when we have a healthy cash flow and we can pay for our crude and product importation obligations. While it is true that the national indebtedness to the NNPC is putting pressure on our operations, nonetheless we are able to meet all our obligations. We therefore cannot be said to be insolvent,’’ Ajuonuma stated.

He explained that the Corporation is being owed N1.156 trillion naira by the Federal Government as a result of petroleum subsidies which if reimbursed would enable the NNPC to offset the N450 billion debt being owed the Federation Account Allocation Committee, FAAC.

He said that the NNPC will continue to play its central role of ensuring steady and efficient supply of petroleum products throughout the country and urged Nigerians and its Joint Venture Partners to remain calm.

Babalola had Tuesday confirmed to financial journalists that the by the corporation has been unable to pay the N450 billion naira owed the Federation Account stating that the Corporation had written the Federal Ministry of Finance to explain that it was experiencing financial difficulties as a result of the disequilibrium between costs and cash inflow streams.

He also said the Corporation had requested for a reimbursement of N1.156 trillion naira from the Federal Ministry of Finance in order to repay its debt of N450 billion naira to the Federation Account.