NNPCL Warns Of Prolonged Fuel Shortage Due To Mounting $6B Debt

NNPCL Warns Of Prolonged Fuel Shortage Due To Mounting $6B Debt

The Nigeria National Petroleum Company Limited (NNPCL) has admitted that its current financial troubles may threaten the consistent supply of petrol across the country……….CONTINUE READING

This disclosure follows reports that the state-owned oil company owes fuel suppliers around $6 billion, leading many suppliers to hesitate in providing the product.

Despite these financial difficulties, NNPCL has been forced to ration its stock and urge major suppliers to continue deliveries. Over the weekend, it was reported that at least five vessels carrying fuel to Nigeria refused to unload their cargoes, fearing non-payment.

Facing this financial strain, the NNPCL has sought a $300 million bailout from the Federal Government, but sources indicate this amount is insufficient to maintain nationwide petrol distribution. As a result, many filling stations across the country were without fuel yesterday, causing long queues of frustrated motorists in Lagos, Abuja, and other major cities.

The crisis has also allowed independent marketers to increase prices, with reports that petrol was being sold for as much as N950 per litre in some areas of Lagos and even higher in other states.

In a statement from NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, the company acknowledged the significant debt and the impact it has had on their operations.

“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.”