NNPC Update
NNPC says Debts to Oil Traders are Causing Fuel Scarcity in Nigeria.
NNPC says debts to oil traders are causing fuel scarcity in Nigeria.
In a statement released on Sunday, NNPC spokesperson Olufemi Soneye confirmed media reports linking the fuel shortage to supply disruptions caused by these outstanding debts. However, NNPC did not disclose the specific amount owed.
Previously, Nairametrics reported that NNPC’s subsidy debts to oil suppliers were approximately $6.8 billion, hampering the corporation’s ability to import petrol. “NNPC Ltd. acknowledges reports in national newspapers regarding substantial debts to petrol suppliers, creating significant financial strain and threatening fuel supply sustainability. In line with the Petroleum Industry Act (PIA), we are committed to our role as the supplier of last resort, working with government agencies and stakeholders to ensure a steady petroleum supply,” Soneye stated.
NNPC’s statement comes amid severe fuel shortages, indicating that the company may struggle to maintain fixed petrol prices after the subsidy removal on May 29, 2023. NNPC has sought financial relief from the federal government, suggesting a reliance on potential government intervention to settle debts with oil traders. Public anxiety is growing over the possible reintroduction of subsidies, particularly after reports indicated that the federal government may have reinstated them following the naira’s devaluation.
Fuel scarcity has notably affected major cities like Lagos and Abuja, where vehicles are queuing at the few stations selling petrol. This situation is exacerbated by NNPC’s denial that it owes $6.8 billion in fuel subsidy debts, which some attribute to ongoing supply issues. According to reports, major roads in these cities are less congested because motorists are unable to purchase gasoline. Many NNPC-owned stations are closed, with motorists waiting in hopes of them reopening. Fuel prices have ranged from N840 to N1,000 across various locations in the country.
