The Nigerian National Petroleum Company Limited (NNPCL) has disclosed the underlying reasons for the persistent fuel supply issues plaguing the nation, admitting that financial difficulties have severely impacted its operations.
For weeks, the country has experienced a significant fuel shortage, leading to the closure of many filling stations and a sharp increase in the price of Premium Motor Spirit (PMS), commonly known as petrol. Prices have surged to between N950 and N1,000 per liter in some areas, while the few stations selling at around N650 per liter are overwhelmed with long queues.
In a statement released by its Chief Corporate Communications Officer, Olufemi Soneye, and shared with Slye News, NNPC acknowledged its substantial debt to petrol suppliers, a situation that has put considerable strain on the company’s finances and jeopardized the sustainability of fuel supplies.
“The financial burden has placed significant pressure on NNPC, creating challenges that threaten the continuity of fuel distribution across the country,” Soneye noted.
Despite these challenges, NNPC reaffirmed its commitment to fulfilling its obligations under the Petroleum Industry Act (PIA), which designates the company as the supplier of last resort responsible for ensuring national energy security.
“We are actively working in collaboration with relevant government agencies and stakeholders to stabilize and sustain the supply of petroleum products nationwide,” Soneye assured.
It is important to recall that NNPC previously denied allegations that it owed international oil traders approximately $6.8 billion and had failed to remit revenue to the Federation Account since January 2024.
The recent admission by NNPC highlights the serious financial strain affecting the company and its critical role in maintaining the nation’s fuel supply.
