News
Fuel Shortages Linked To NNPCL’s $6 Billion Debt Crisis
Global fuel suppliers are increasingly unwilling to extend credit to the Nigeria National Petroleum Company Limited (NNPCL) due to its growing debt, which now exceeds $6 billion.
Sources within the industry told Sunday Vanguard that NNPCL, responsible for importing petrol through supply agents, has faced difficulties settling its mounting debts, leading to widespread disruptions in fuel supply across Nigeria.
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EKO HOT BLOG reports that at least five vessels scheduled to deliver petrol to Nigeria have refused to unload their cargo, concerned about the risk of non-payment.
As a result, NNPCL has been forced to ration its available fuel and appeal to long-time suppliers to continue their deliveries.
Fuel NNPCL $6 Billion Debt
A senior NNPCL official, speaking on condition of anonymity, confirmed that the company is experiencing a shortage of products, which has slowed bulk sales to depot owners in recent days.
The decrease in supply has directly contributed to the fuel shortages and long queues observed recently.
“Bulk sales to depot owners have significantly slowed over the past five days due to supply shortages,” the official noted.
The Federal Government intervened in mid-August with a $300 million payment to address some of NNPCL’s outstanding debts, but this provided only temporary relief before fuel shortages returned.
The official admitted, “The Federal Government provided $300 million to help settle some liabilities and restore supplier confidence, but this only offered a brief reprieve of about a week before the shortages reappeared.”
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NNPCL’s Chief Corporate Communications Officer, Femi Soneye, acknowledged that credit transactions are typical in the global oil industry but did not disclose the exact amount of debt owed to suppliers. He highlighted that while trading on credit is standard, specific debt figures were not provided.
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