After weeks of denial, the Nigerian National Petroleum Company Limited (NNPC) has finally admitted to facing financial challenges due to a $6 billion debt owed to petrol suppliers.
This admission has sparked fears of a potential fuel price hike.
The NNPC’s debt has led to fuel queues in filling stations across the country, with the company struggling to cover the gap between fixed pump prices and international fuel costs. Despite efforts to address the issue, the queues persist, leaving Nigerians frustrated.
In a surprising turn of events, the NNPC has acknowledged the debt, stating that it poses a threat to the sustainability of fuel supply. This admission comes after repeated denials, with the company’s Chief Corporate Communications Officer, Olufemi Soneye, previously stating that the NNPC did not owe international oil traders $6.8 billion.
The NNPC’s admission has fueled speculations that the Federal Government may stop paying “under-recovery” or shortfall on imported petrol. If this happens, operators predict that the price of petrol could rise above N1,000, and interested accredited marketers may be able to import petrol, breaking the NNPC’s monopoly.
The NNPC has assured that it is working with relevant government agencies and stakeholders to maintain a consistent supply of petroleum products nationwide. However, the company’s financial strain has raised concerns about its ability to fulfill its obligations.
