Debt to Petrol Suppliers Behind Nigeria’s Fuel Scarcity – NNPC
The Nigerian National Petroleum Corporation (NNPC) Limited has acknowledged that the debt it owes to international petrol suppliers is the reason behind the occasional fuel scarcity in Nigeria.
In a statement on Sunday, September 1, signed by NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, the company disclosed that “financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply.”
In July, Neusroom reported that NNPC was seeking a crude oil-backed loan estimated to be worth $2 billion, despite its gasoline debt doubling to $6 billion within the last four months.
However, the oil firm, which claimed it made ₦3.3 trillion in profit in 2023 alone, stated in mid-August that it did not owe international oil traders the sum of $6.8 billion.
“NNPC Ltd. 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, so it is normal to owe at one point or the other,” NNPC Ltd. said in that press release.
Nigerians have been experiencing repeated fuel scarcity this year, which has resulted in occasional hikes in the price of the commodity. The reason for the unavailability of the product has been blamed on several factors, including NNPCL’s Vice President (Downstream), Dapo Segun, who claimed on August 20 that rain, thunderstorms, and lightning have caused fuel scarcity.
However, Soneye said the firm is dedicated to its role as the supplier of last resort.
“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” he said.
