The Nigerian National Petroleum Corporation Limited (NNPCL) has blamed its huge debt to petrol suppliers on the supply cost of premium motor spirit (PMS) popular as petrol.
The disclosure was made in a statement signed by Olufemi Soneye,
Chief Corporate Communications Officer of NNPC Limited.
According to Soneye, the situation is currently impacting product supply and sustainability.
Soneye who acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers added that the financial strain has placed considerable pressure on the company.
He noted that 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”, Soneye said.
It is estimated that the NNPC debt stands at approximately $6 billion.
Meanwhile, NNPCL’s admission comes amidst growing concerns over the national oil company’s financial obligations and biting fuel scarcity in the country with increasing queue at fuel stations in the country as a result of shortages in supply.
It would also be recalled that President Bola Tinubu recently approved a request by the NNPCL to use its 2023 final dividend to fund petrol subsidy.
The President also granted an approval for the suspension of the payment of 2024 interim dividends as part of measures targeted at enhancing the cash flow of the organization.
NNPCL’s cumulative petrol subsidy bill from August 2023 was expected to hit N6.884 trillion by December 2024.
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