Petrol Scarcity May Worsen as NNPC Admits Inability to Pay Suppliers

By Adedapo Adesanya

The Nigerian National Petroleum Corporation (NNPC) Limited has admitted it owes international oil traders amid ongoing fuel scarcity across the country.

In a statement released on Sunday, NNPC spokesperson, Mr Olufemi Soneye, confirmed reports attributing the fuel shortage to supply disruptions caused by outstanding debt obligations to international petrol suppliers.

While the company acknowledged this situation, it did not disclose the exact amount owed to these offshore oil marketers, though it hinted at seeking relief from the federal government to navigate this financial crisis.

“NNPC Limited 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 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.

This is happening as the government continues to deny the return of fuel subsidies, despite mounting evidence as seen in the events happening around the scarcity of the commodity.

It was also reported recently that the NNPC was indebted to oil suppliers to the tune of $6.8 billion in subsidy debts, making it challenging for the state oil firm to procure imported petrol products.

After the reports emerged, the NNPC in a statement last week denied that it was owing the traders.

“NNPC does not owe the sum of $6.8 billion to any international trader(s). In the oil trading business, transactions are carried out on credit, and so it is normal to owe at one point or the other.

“But NNPC., through its subsidiary, NNPC Trading, has many open trade credit lines from several traders. The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis,” it claimed.