The Nigeria National Petroleum Corporation Limited (NNPCL) has confirmed significant financial strain due to debt it owed to international petrol suppliers with the attendant implications for unsustainably of fuel in the downstream market in the long term.
The state-controlled oil company in a statement, however, still reassured its commitment to ensuring that the fuel remains available for consumers nationwide in furtherance of its roles as provided for in Petroleum Industry Act (PIA) 2023.
The NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, stated that the company was working closely with government agencies and stakeholders to ensure stable supply of petroleum products across the nation.
He clarified: “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 spokesman added.
Based on the PIA’s provisions, the company has remained the sole importer of petrol into the country over the past months as other marketers, including the major ones, had been contending with foreign (FX) exchange challenges, thereby leading to significant increase in price differentials between the landing costs and the retail price of the product.
It would be recalled that about a week ago, many newspapers and online media had reported that the NNPCL was owing approximately $6 billion to fuel traders for imported petrol for over 130 days, longer than the standard 90 days.
