The Nigerian National Petroleum Company Limited has finally admitted that it owes petrol suppliers $6bn, a debt that has led to fuel scarcity and long queues at filling stations across the country.
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In a statement on Sunday, the NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, said the company was facing financial strains due to the debt, which has impacted supply sustainability.
The admission comes after weeks of denial by the NNPC, and it hints at a possible price hike in the future.
“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” Soneye said.
The debt has led to a shortage of petrol, with many filling stations owned by independent marketers selling the product at higher prices, ranging from N900 to N1,000 per litre.
The NNPC has been the sole importer of petrol, and the Federal Government has been paying the company to sell fuel to Nigerians at a subsidised rate.
However, the failure of the government to pay the shortfall has led to incessant fuel scarcity across the nation, with the debt to international oil companies piling up.
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The situation has led to calls for the government to either remove the fuel subsidy or pay the shortfall, as the partial deregulation has created a disparity in the price of petrol, with NNPC retail stations selling at lower prices than independent marketers.
“The Federal Government and the NNPC should just do this thing once and for all. If they want to deregulate, let them deregulate fully, because we know where we are going; that’s why you’re seeing this disparity whereby the NNPC retail is selling at N580 in Lagos and independent marketers will be selling at N800,” said Hammed Fashola, National Vice Chairman of the Independent Petroleum Marketers Association of Nigeria.
