From Victor Osula, Abuja
The Nigerian National Petroleum Corporation (NNPC) Limited says its indebtedness to petrol suppliers has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply.
Earlier, the NNPC Ltd refuted reports that it owes international oil traders $6.8 billion. The company, which argued that oil trading transactions are commonly conducted on credit, had said its subsidiaries were paying up their obligation on a first-in-first-out (FIFO) basis. Reports have said this indebtedness has caused disruption in the supply of fuel at petrol stations thereby increasing the endless queues across the country with prohibitive costs from the official N620 to over N1,000 per litre. This admission by the company may mean the continued fuel shortages in the days ahead
However, the Chief Corporate Communications Officer of the company, Olufemi Soneye, in a statement on Sunday night, admitted that the national oil company is significantly indebted to oil suppliers, adding that the debts have also impacted petrol supply.
Soneye, however, assured that the NNPC is actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.
Soneye said, “NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers. This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply.
“In line with the Petroleum Industry Act (PIA), NNPC Ltd. remains dedicated to its role as the supplier of last resort, ensuring national energy security.
“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.”
