Petrol Supply Costs Weigh Heavily On NNPC Ltd’s Finances

Nigerian National Petroleum Company (NNPC Ltd), Nigeria’s state-owned oil company, is facing financial difficulties due to the high cost of supplying Premium Motor Spirit (PMS), also known as petrol.

The company confirmed reports of significant debt to petrol suppliers, which is threatening the sustainability of fuel supply in the country.

In a statement on Sunday by Olufemi Soneye, the company’s chief corporate communications officer, said that despite the challenges, NNPC Ltd remains committed to ensuring national energy security as the supplier of last resort, in accordance with the Petroleum Industry Act (PIA).

Soneye, said that the company is working closely with government agencies and stakeholders to maintain a steady supply of petroleum products across the country.

Multiple reports had attributed the lingering petrol scarcity in many parts of the country to a $6 billion debt NNPC owes suppliers.

While admitting to the debt on Sunday, NNPC said the financial strain threatens the supply of petrol.

“NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers,” the company said.

Advertisement

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”.