The Management of the Nigerian Petroleum Development Company Limited (NPDC) has rejected several publications alleging that NPDC denied receiving the sum of US$6 billion from its parent company, Nigerian National Petroleum Corporation being proceeds from NPDC’s oil and gas operations.
In a press statement by Mr. Victor Briggs, Managing Director of NPDC; the company stated that “the reports are misleading and do not reflect the contents of what was submitted to the Senate Committee on Finance”
Mr. Briggs posited that “For the avoidance of doubt, NPDC in its submission stated that the funding relationship between NNPC and NPDC provides for proceeds from Hydrocarbon sales to be paid into an NNPC/NPDC account.
He further stated that NNPC, as the parent company of NPDC, reviews and approves NPDC’s annual budgets and performance and disburses funds on periodic basis as per the approved work programme that covers both NPDC’s capital and operating expenses.
Adding that this approach also provides for NNPC to ‘’critically monitor and control costs as part of strict financial discipline and make direct payments on behalf of NPDC for royalty and taxes while deducting costs in accordance with the provisions of the Petroleum Profits Tax (PPT) as amended”
It will be recalled that at the ongoing NNPC probe, the parent company was said to have made certain payments into the accounts of NPDC.
