We received $6b from NNPC – NPDC

The management of the Nigerian Petroleum Development Company Limited said on Monday that its attention has been drawn to several publications alleging that it denied receiving $6 billion from its parent company, the Nigerian National Petroleum Corporation, being proceeds from NPDC’s oil and gas operations.
In a statement by Victor Briggs, the Managing Director of NPDC, the company stated: “The reports are misleading and do not reflect the contents of what was submitted to the Senate Committee on Finance.”
Briggs posited: “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.
“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.
“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 as amended.
“Given the above, it is hereby reiterated that the sum of $6 billion was remitted to the above stated NNPC/NPDC account which warehouses all of NPDC’s revenue earnings from its operations.
“Releases from this account are in turn disbursed into NPDC-only accounts for the execution of its operations.
“We therefore want to restate that NNPC funds NPDC adequately for the effective conduct of its operations and meets the NPDC’s statutory responsibilities for royalties, taxes and other exactions as necessary.”