The Nigerian National Petroleum Company Limited (NNPC) has admitted to facing significant financial strain due to its substantial debt to petrol suppliers, which is impacting the sustainability of fuel supply in the country.
This admission was made in a statement released on Sunday, September 1, 2024, by Olufemi Soneye, the company’s Chief Corporate Communications Officer.
Key Points:
Debt to Suppliers:NNPC acknowledged owing over $6 billion to petrol suppliers, a figure that has led to a reluctance among international suppliers to continue providing petrol on credit.
Financial Strain: The company stated that this debt has placed considerable pressure on its operations and threatens the sustainability of fuel supply.
Supply Disruptions: At least five vessels intended to deliver petrol to Nigeria have refused to unload their cargo due to fears of non-payment, exacerbating the fuel scarcity.
Government and Stakeholder Collaboration: Despite the challenges, NNPC is working with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.
Statement from NNPC:
In the statement titled “NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability,” NNPC acknowledged the debt and its implications:
“NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers. This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of the fuel supply.
“In line with the Petroleum Industry Act (PIA), NNPC Ltd. remains dedicated to its role as the supplier of last resort, ensuring national energy security. We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.”
Impact on Fuel Scarcity:
The ongoing fuel scarcity has been severe, with reports indicating that petrol is being sold on the black market for as high as N1,200 to N1,500 per litre in some areas. The situation is expected to remain challenging unless the debt issues are resolved, and supply chains are stabilized.
