The Nigerian National Petroleum Company Limited (NNPCL) has officially acknowledged its substantial debt to petrol suppliers, a financial problem that the company warns is threatening the stability of fuel supplies across Nigeria.
In a statement released on Sunday, Olufemi Soneye, spokesperson for NNPCL, highlighted the severity of the situation.
“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 fuel supply,” Soneye said.
He emphasised that the debt crisis is contributing to the persistent fuel shortages and long queues that have become increasingly common throughout the country.
Soneye assured the public that the company is actively working with relevant government agencies and stakeholders to maintain a steady supply of petroleum products nationwide.
“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,” he said.
Nigeria is facing a severe energy crisis. The country’s refineries, all state-owned, are currently non-operational, leading to a heavy reliance on imported refined petroleum products.
NNPCL is the primary importer of these essential commodities, making its financial stability crucial for the country’s energy supply.
Since the removal of fuel subsidies in May 2023, the price of petrol has soared dramatically, rising from around N200 per litre to approximately N700 per litre.
This sharp increase has compounded the struggles of Nigerians who rely on petrol for transportation and electricity generation due to the country’s unreliable power supply.
The current fuel crisis is further exacerbated by Nigeria’s ongoing foreign exchange (forex) crisis. Oil marketers have reported that the landing cost of imported petrol has surged above N1,000 per litre.
However, the commodity is being sold at around N700 per litre in various parts of the country.
This discrepancy suggests that the government is covering the price gap, a situation that has put additional strain on the country’s finances.
The increased cost of petrol has led to widespread public frustration. Nigerians are experiencing long queues at filling stations, which have become a common sight.
The high cost of fuel is placing a significant burden on citizens, who are already struggling with high inflation and economic instability.
