The Nigerian National Petroleum Company (NNPC) Limited has acknowledged that it is facing significant financial challenges, owing a substantial $6 billion debt to suppliers of premium motor spirit (PMS), commonly known as petrol.
In a statement released on Sunday by Olufemi Soneye, the Chief Corporate Communications Officer, NNPC disclosed that the rising cost of petrol supply has strained the company’s finances, jeopardizing its ability to maintain a steady supply of the product.
Reports of petrol scarcity have persisted across Nigeria since May, with the situation reportedly worsened by the company’s mounting debt. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) previously attributed the scarcity to contractual issues between mother and daughter vessels. In July, NNPC cited flooding, weather-related disruptions, and challenges in the discharge operations of some vessels as contributing factors to the fuel shortage.
However, in its latest statement, NNPC confirmed that the financial strain from its debt obligations is now a critical threat to the nation’s petrol supply.
“NNPC Ltd. acknowledges recent reports in national newspapers regarding the company’s significant debt to petrol suppliers,” the statement read, underscoring the gravity of the situation.
