NNPC, Capital Oil trade barbs over indebtedness

NNPC Towers.

19 March 2017, Sweetcrude, Abuja — The Nigerian National Petroleum Corporation (NNPC) and Capital Oil and Gas Industries at the weekend traded barbs over the degree of indebtedness of each party.

While the NNPC stated that it would invite the Department of State Security, DSS, and Economic and Financial Crime Commission, EFCC, to recover an N11 billion debt

The Corporations claims that the money was incurred by Capital Oil and Gas Limited, under a throughput arrangement, which led to the Corporation storing Premium Motor Spirit, PMS, at the tank farm of Capital Oil, adding that the product was sold by the firm without its permissioN.

In a swift reaction, however, Mr Ifeanyi Ubah, the Group Managing Director of Capital Oil and Gas Limited, said that the NNPC allegation was misleading and mischievous. He added that the firm failed to disclosed that it also owes Capital Oil billions of Naira from their mutual business transactions.

In a statement the Group General Manager, Public Affairs Division, Ndu Ughamadu disclosed that several committees, including an investigative one, had been set up to identify external and internal parties to the illegal deal, and  another to review its policy and guidelines for engaging in products through-put arrangements with third parties.

The review committee, it added would also establish control measures that could help avert similar incident in the future.

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