• Company struggles to pay debts as foreign exchange crisis worsens”
• Fuel supply sustainability under threat as debts pile up
The Nigeria National Petroleum Corporation Limited (NNPCL) has confirmed that it is experiencing significant financial strain due to outstanding debts owed to international petrol suppliers.
As the sole importer of petrol into the country, NNPCL has been grappling with the impact of the foreign exchange crisis, which has led to a substantial increase in price differentials between the landing costs and retail price of petrol.
According to reports, NNPCL is struggling with delayed payments exceeding 130 days, far beyond the standard 90-day payment period.
This financial pressure threatens the sustainability of fuel supply in Nigeria, with the company owing approximately $6 billion to fuel traders for imported petrol.
Despite these challenges, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, assured that the company remains committed to its role as the supplier of last resort under the Petroleum Industry Act (PIA).
“NNPC Ltd has acknowledged recent reports 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 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,” Soneye added.
The company is working closely with government agencies and stakeholders to address the situation and ensure stable fuel supply across the nation.
However, the challenges are compounded by rising global fuel prices and a depreciating naira, which have increased effective subsidy costs for the Nigerian government, straining NNPCL’s finances and complicating efforts to stabilize the economy.
