The ongoing fuel crisis in Nigeria is expected to worsen as the Nigerian National Petroleum Company Limited (NNPC) has revealed that it owes petrol suppliers about $6 billion.
According to Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, the company is facing financial strain due to the debt, which poses a threat to the sustainability of fuel supply.
Despite this, the NNPC says it remains committed to its role as the supplier of last resort.
“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.
“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,” the statement read.
The statement by the NNPC confirms reports that fuel suppliers have halted supplies to the company due to the growing debt. This has led to a shortage of petrol, forcing filling stations to increase prices to between N900 and N1,200 per litre in many states.
Industry insiders have revealed that the outstanding liabilities owed to suppliers stand at over $6 billion, causing suppliers to rethink servicing the country. At least five vessels intended for supply to Nigeria have refused to discharge fuel to NNPC due to fear of non-payment.
The NNPC has started rationing its stock, appealing to trusted suppliers not to cut off supply.
A senior official at the NNPC confirmed that the company is struggling to supply dealers due to a shortage of products in its tanks.
“Bulk sales of ships and trucks to depot owners have slowed down in the last five days due to shortage of supply,” he said.
