Competent industry insiders have disclosed that the Nigeria National Petroleum Company Limited is grappling with a staggering debt exceeding $6 billion.
This accumulated debt has significantly contributed to the persistent disruptions in the country’s fuel supply over the past few weeks.
According to Vanguard, international suppliers of petrol have become increasingly reluctant to extend credit to NNPCL due to the company’s mounting debts.
An individual closely associated with PMS importation into Nigeria revealed that at least five vessels, which were initially scheduled to deliver petrol to the country, have refused to discharge their cargo to NNPCL out of concern that they might not receive payment upon delivery.
The source highlighted that the growing debt has intensified the pressure on NNPCL, which has now been forced to ration its existing stock and appeal to long-term suppliers to maintain their supply lines.
Senior NNPCL official, who craved anonymity, acknowledged that the company is struggling to meet the demand from dealers due to a dwindling supply of products.
The official expressed concern, stating, “Bulk sales of ships and trucks to depot owners have slowed down in the last five days due to a shortage of supply.”
The insider further explained that there had been no bulk sales since Tuesday, leading to noticeable scarcity within the downstream sector.
Another NNPCL employee confirmed that the recent fuel shortage, which has caused long queues at petrol stations over the past two months, was primarily due to a reduction in product supply from suppliers owed by the Nigerian oil firm.
The high-ranking official admitted, “I was aware that at some points in mid-August, the Federal Government had to step in by providing funds to NNPCL to clear some of the outstanding liabilities and restore confidence among the suppliers to continue. However, what was paid amounted to about $300 million, which only offered a brief reprieve, and the queues quickly returned.”
In response to these concerns, the Chief Corporate Communications Officer of NNPCL, Mr Femi Soneye, addressed the situation by explaining that credit transactions are commonplace in the global oil industry.
However, he refrained from providing specific details on the company’s outstanding debt.
“In the oil trading business, transactions are often carried out on credit; so it is normal to have outstanding balances at certain times,” Soneye stated. “Additionally, through our subsidiary, NNPC Trading, we maintain open trade credit lines with several traders.”
When pressed for the exact amount owed to PMS suppliers, Soneye declined to provide a figure, stating, “I will need some time to provide you with the exact amount.”
