NNPC Limited Grapples with $3 Billion Debt to Oil Traders for Imported Petrol

NNPC Limited, the Nigerian National Petroleum Company, is facing a daunting debt of approximately $3 billion owed to oil traders for imported petrol, recent reports reveal.

Despite efforts to clear the overdue payments, the pace remains sluggish, surpassing the stipulated 90 days to over 130 days.

Sources close to the matter disclosed to Newsmen that NNPC’s sluggish repayment rate is attributed to the cessation of fuel subsidies since May 2023.

This move has posed significant challenges to the company’s import budget recovery. Additionally, NNPC is grappling with soaring global oil prices and a depreciating naira, further constraining its import capabilities.

With crude oil prices exceeding $90 per barrel, NNPC’s import costs have surged, exacerbating the financial strain.

Data from Argus Media pricing data indicates that the highest recorded market price for petrol in West Africa in February was N1,229 per litre, marking a significant increase of 150 percent compared to the government’s June price cap.

Despite the fluctuating market conditions, NNPC has maintained its stance of not subsidizing imported gasoline.

Mele Kyari, Group CEO of NNPC Limited, reiterated in October 2023 that the company solely recovers the full cost of imported products and does not extend subsidies to oil traders.

Kyari emphasized, “There is no subsidy whatsoever… We are recovering our full cost from the products that we import.” He urged prompt action from marketers to resume imports and highlighted government interventions aimed at addressing challenges faced by market players.