The Nigerian National Petroleum Company Limited (NNPCL) is grappling with a massive debt of over $6 billion, which has led to a crisis in petrol supply across the country.
Global petrol suppliers are increasingly reluctant to provide fuel on credit, causing disruptions in fuel supply and long queues at petrol stations.
According to industry sources, NNPCL’s accumulating debts have made it difficult for the company to settle its bills, resulting in a slowdown in bulk sales to depot owners. At least five vessels carrying petrol have refused to unload their cargo, fearing they would not receive payment upon delivery.
A senior NNPCL official confirmed that the company is struggling to cope with the shortage of products, leading to a reduction in supply to depot owners. The official noted that the Federal Government intervened in mid-August by providing $300 million to settle part of the outstanding debts, but this only provided temporary relief.
NNPC’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.
The debt crisis has led to a slowdown in petrol supply, resulting in long queues and fuel scarcity across the country. The situation has forced NNPCL to ration its available fuel and plead with longstanding suppliers to continue their deliveries.
