NNPCL Faces Financial Strain Amid Petrol Supply Issues

The Nigerian National Petroleum Corporation Limited (NNPCL) has acknowledged facing significant financial strain due to a debt of approximately $6 billion owed to petrol suppliers, which threatens the sustainability of fuel supply in Nigeria. Chief Corporate Communications Officer Olufemi Soneye stated that this financial pressure has led to delays in payments exceeding 130 days, significantly longer than the industry standard. Despite these challenges, NNPCL remains committed to its role as the supplier of last resort under the Petroleum Industry Act and is working with government agencies and stakeholders to ensure a consistent supply of petroleum products. The ongoing financial difficulties have been exacerbated by rising global fuel prices and a depreciating naira, prompting concerns about potential fuel price increases. Reports indicate that suppliers are now reluctant to provide fuel on credit due to the growing debt, leading to disruptions in fuel supply across the country. The situation highlights the urgent need for resolution to maintain national energy security.