The Nigeria National Petroleum Company Limited (NNPCL) has acknowledged that its current financial difficulties may jeopardise the sustainability of petrol supply across the country.
This admission comes amid reports that the state oil giant is indebted to fuel suppliers to the tune of approximately $6 billion, leading to reluctance among supply agents to make the product available.
Despite the financial challenges, the worsening situation has compelled NNPCL to resort to stock rationing and appeal to major suppliers to continue deliveries. Over the weekend, it was reported that no fewer than five vessels destined for Nigeria refused to discharge their fuel cargoes due to fears of non-payment.
The financial strain has also forced the company to seek a $300 million bailout from the Federal Government, which, according to sources, is insufficient to maintain the nationwide petrol supply. As a result, many filling stations across the country were without fuel yesterday, leading to long queues of desperate motorists in Lagos, Abuja, and other major cities.
The crisis has provided an opportunity for independent marketers to hike prices, with reports indicating that petrol was sold for as high as N950 per litre in some parts of Lagos and even higher in other states.
In a statement issued by the NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, the company acknowledged the significant debt and the pressure it has placed on operations.
It read;
“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 the 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.”