NNPCL Admits Financial Stress Due to Fuel Shortage

The Nigerian National Petroleum Corporation Limited (NNPCL) has acknowledged the financial stress it is facing, which is contributing to the ongoing fuel crisis in the country. This admission comes amid widespread reports that the company’s $6 billion debt has been a significant factor in the fuel shortages and delivery issues plaguing Nigeria.

NNPCL spokesperson Soneye Olufemi, in a statement released on Sunday, confirmed the financial challenges the company is grappling with due to the high costs associated with the supply of Premium Motor Spirit (PMS). Despite these challenges, NNPCL emphasized its commitment to fulfilling its role as the provider of last resort, as mandated by the Petroleum Industry Act (PIA), to ensure the country’s energy security.

“NNPC Ltd. acknowledges the reports in national newspapers about the company’s huge debts to oil consumers. This financial pressure puts a lot of strain on the company and threatens the continuity of oil supplies,” Olufemi stated. He also noted that the company is working closely with government agencies and other stakeholders to maintain the supply of petroleum products across the country.

The admission from NNPCL comes as Nigerians continue to experience long lines at fuel stations nationwide, with fears of a further increase in fuel prices. This situation persists despite the company’s earlier projection of a N3.3 trillion profit for the 2023 financial year.

The ongoing fuel crisis has sparked concerns over the sustainability of fuel supplies and the financial health of NNPCL, raising questions about the future stability of Nigeria’s energy sector.