By Samaila Emmanuel
The Nigerian National Petroleum Company Limited (NNPCL) has acknowledged a significant debt of $6 billion to petrol suppliers, posing a threat to the sustainability of fuel supply in Nigeria.
This admission comes after the company previously attributed supply shortages to logistics challenges and flooding.
In a statement released on Sunday, NNPCL spokesman Olufemi Soneye confirmed the debt, stating that it has placed considerable pressure on the company and risks disrupting the consistent supply of petroleum products nationwide.
Despite this financial strain, NNPCL remains committed to its role as the supplier of last resort, ensuring national energy security.
Nigeria’s reliance on imported refined petroleum products, coupled with the non-operational state of its state-owned refineries, has exacerbated the country’s energy challenges. The removal of subsidies in May 2023 led to a tripling of petrol prices, further complicating the situation.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also highlighted the challenges faced by petrol marketers, citing the high landing cost per litre of petrol and the impossibility of importing the commodity without significant subsidies.
Olufemi Soneye confirmed the debt, stating that it has placed considerable pressure on the company and risks disrupting the consistent supply of petroleum products nationwide.
However, Aliko Dangote’s $20 billion refinery facility in Lagos, which commenced operations last December, is expected to alleviate some of the pressure on the fuel supply chain. The refinery has begun supplying diesel and aviation fuel to marketers and is expected to commence petrol supply soon.
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