The Nigerian National Petroleum Company Limited (NNPC) has reversed its earlier denials of media reports and has now blamed severe financial challenges for its mounting debt to petrol suppliers, a factor that has contributed to shortage in the nation’s fuel supply.
The revelation comes amidst growing concern over fuel scarcity with queues building up at stations and nationwide disruptions.
Addressing the issue in a press statement on Sunday by its Chief Corporate Communications Officer, Olufemi Soneye, NNPC confirmed reports in the media about its huge debt obligations.
The statement shows a volte face on an August 18 statement, where NNPC through Soneye denied owing suppliers $6.8 billion for imported fuel, saying that such trade credit lines were normal in the oil business.
The company revealed that the financial strain placed immense pressure on its operations, posing a potential threat to its ability to maintain consistent fuel supply across the country.
“The financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply,” the statement read.
As the nation’s principal fuel supplier, NNPC plays a critical role in ensuring the availability of petroleum products, a responsibility underscored by the Petroleum Industry Act (PIA). The company reaffirmed its commitment to this duty, despite the current challenges, stating, “NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security.”
The company also disclosed that it is actively working with relevant government agencies and other stakeholders to navigate this crisis.
“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” the statement stated.
The news comes after Nigeria National Petroleum Company Limited (NNPC), the country’s sole importer of refined products, in August announced record profits for 2023 but warned that it was covering for shortfalls in government’s petrol import bill.
Reuters reported early July that the NNPC’s debt to oil traders had surpassed $6 billion, doubling since early April, as the company struggled to cover the gap between fixed pump prices and global fuel costs. The NNPC declined to comment at that time.
It later blamed operational hitches for the long fuel queues.
