The Nigeria National Petroleum Company Limited (NNPCL) has disclosed that the organization is experiencing significant financial strain due to the costs associated with supplying Premium Motor Spirit (PMS), commonly known as petrol.
In a statement issued on Sunday and signed by its Chief Corporate Communications Officer, Olufemi Soneye, NNPCL revealed that this financial pressure is threatening the sustainability of fuel availability across the country.
Despite the challenges, the company assured that it is actively collaborating with relevant government agencies and other stakeholders to ensure a steady supply of petroleum products nationwide.
The statement, titled “NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability,” acknowledged recent reports about the company’s substantial debt to petrol suppliers. NNPCL emphasized that this financial burden is putting immense pressure on the organization and endangering the continuity of fuel supply.
“NNPC Ltd. has recognized recent reports in national newspapers concerning the company’s mounting debt to petrol suppliers. This financial strain has created considerable pressure and poses a serious threat to the sustainability of fuel supply,” the statement read.
“In accordance with the Petroleum Industry Act (PIA), NNPC Ltd. remains committed to its role as the supplier of last resort, ensuring national energy security. We are working closely with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products across the country.”
This announcement from NNPCL follows reports that global petrol suppliers are becoming increasingly hesitant to extend credit to the company due to its growing debt, which has now exceeded $6 billion.
According to sources cited by Sunday Vanguard, NNPCL, the sole importer of petrol through supply agents, has been struggling to settle its accumulating debts, leading to disruptions in fuel supply throughout Nigeria.
Insiders disclosed that at least five vessels carrying petrol destined for Nigeria have refused to unload their cargo, fearing they would not be paid upon delivery.
In response to the situation, NNPCL has been forced to ration its available fuel and appeal to longstanding suppliers to continue their deliveries despite the outstanding debt.
