The Nigeria National Petroleum Company Limited (NNPCL) says the organization is facing financial strain due to the supply of Premium Motor Spirit (PMS), popularly known as petrol.
The NNPCL, in a statement on Sunday signed by its Chief Corporate Communications Officer, Olufemi Soneye, said the financial strain has placed pressure on the company and poses a considerable threat to the availability of fuel in the country.
The company however added that despite the current situation, it is working with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.
The statement titled ‘NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability’ reads: “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.”
The acknowledgement by the NNPC comes hours after reports emerged that global petrol suppliers have become increasingly reluctant to provide fuel on credit to the Nigeria National Petroleum Company Limited (NNPCL), due to a growing debt of over $6 billion.
According to Sunday Vanguard, sources within the industry disclosed that NNPCL, which is solely responsible for importing petrol through supply agents, has struggled to settle its accumulating debts, causing disruptions in fuel supply across the country.
Insiders revealed that at least five vessels intended to deliver petrol to Nigeria have refused to unload their cargo, fearing that they would not receive payment upon delivery.
This situation has forced NNPCL to ration its available fuel and plead with longstanding suppliers to continue their deliveries.
