Mounting $6 Billion NNPC Debt Behind Petrol Supply Issues – Sources

Global petrol suppliers have become increasingly reluctant to provide fuel on credit to the Nigeria National Petroleum Company Limited (NNPCL), due to a growing debt of over $6 billion.

According to Sunday Vanguard, sources within the industry disclosed that NNPCL, which is solely responsible for importing petrol through supply agents, has struggled to settle its accumulating debts, causing disruptions in fuel supply across the country.

Insiders revealed that at least five vessels intended to deliver petrol to Nigeria have refused to unload their cargo, fearing that they would not receive payment upon delivery.

This situation has forced NNPCL to ration its available fuel and plead with longstanding suppliers to continue their deliveries.

A senior NNPCL official, who requested anonymity, confirmed that the company is grappling with a shortage of products, leading to a slowdown in bulk sales to depot owners over the past few days.

This reduction in supply has directly contributed to the fuel shortages and long queues witnessed in recent weeks.

“Bulk sales of ships and trucks to depot owners have slowed down in the last five days due to shortage of supply,” the official lamented.

The official also noted that the Federal Government intervened in mid-August by providing NNPCL with $300 million to settle part of its outstanding debts. However, this amount only provided temporary relief, and the fuel scarcity quickly returned.

The top official admitted: “I was aware that at some points in mid-August, the Federal Government had to come in by giving money to NNPC to defray some of the outstanding liabilities and boost the confidence of the suppliers to continue.

“However, what was paid was about $300 million, which only helped us get some reprieve for about a week before the queues fully returned,” he said.

When asked about the situation, NNPCL’s Chief Corporate Communications Officer, Femi Soneye, acknowledged that credit transactions are standard in the global oil industry but declined to specify the total amount owed to suppliers.

Soneye emphasized that trading on credit is common, but did not provide further details on the exact debt figures.