*The Nigerian National Petroleum Company Limited admits the state oil company is currently facing significant financial strain, including 鈥榯he significant鈥� $6 billion debt owed fuel suppliers, as escalating costs associated with the supply of Premium Motor Spirit, also called petrol, jeopardise sustainability of its operations

Isola Moses | 绿帽献妻

Citing the long-term stability of fuel availability in the economy, the Nigerian National Petroleum Company (NNPC) Limited has said the company is currently facing significant financial strain, as escalating costs associated with the supply of Premium Motor Spirit, also called petrol, jeopardise sustainability of its operations.

The state oil company has raised concerns about the long-term stability of fuel availability in Nigeria.

绿帽献妻 reports there have been reports that a $6 billion debt the NNPCL owes petrol suppliers has worsened petrol scarcity in Nigeria, which has been a recurring decimal since the beginning of this year.

Repeatedly, the NNPCL has blamed logistical challenges and flooding, among others for the supply shortages of the essential commodity to energy consumers.

Olufemi Soneye, Chief Corporate Communications Officer at NNPCL, who disclosed this development in a statement issued Sunday, September 1, 2024, addressed recent reports about the company鈥檚 mounting debt to petrol suppliers.

Soneye stated that the said financial strain 鈥渉as intensified financial pressures on NNPC Limited and threatened the continuity of fuel supply.鈥�

The statement read, 鈥淣NPC Limited acknowledges the recent national newspaper reports regarding our substantial debt to petrol suppliers.

鈥淭his financial strain has placed considerable pressure on our operations and threatens the sustainability of our fuel supply.鈥�

The company, however, said in line with the Petroleum Industry Act (PIA), it remained committed to its role as the supplier of last resort, dedicated to ensuring national energy security in Nigeria.

鈥淲e are actively collaborating with relevant government agencies and stakeholders to maintain a consistent supply of petroleum products nationwide,鈥� Soneye stated.

The scarcity of petrol with attendant price hikes ranging from N950 per litre to N2,000 have led to widespread queues by motorists at filling stations in Abuja, Lagos, Kaduna, Niger, Adamawa, Kano, Bauchi and Delta, among others.

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