Finally, NNPC Admits Debts Owed to Oil Traders Responsible for Fuel Scarcity in Nigeria

NNPC has admitted that the debts owed to oil traders are responsible for fuel scarcity in Nigeria.

Newsone Nigeria reports that the Nigerian National Petroleum Corporation (NNPC) has finally admitted that the debts owed to international oil traders are a major factor in the ongoing fuel scarcity in Nigeria.

The NNPC in a statement issued on Sunday night, September 1, 2024, by its spokesperson, Olufemi Soneye, confirmed reports in the Nigerian media, attributing the fuel shortage to supply disruptions caused by outstanding debt obligations to international oil traders.

Though NNPC acknowledged this situation, the corporation did not disclose the exact amount owed to these oil traders.

The corporation said in the statement issued on Sunday that, “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 statement added.

PRESS RELEASE

NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability

NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers. This financial strain has placed considerable… pic.twitter.com/HR1FP1gGzy

— NNPC Limited (@nnpclimited) September 1, 2024

Meanwhile, Newsone recalls that the NNPC was indebted to oil suppliers to the tune of $6.8 billion in subsidy debts, making it challenging for the corporation to procure imported petrol products.