Nigerians look set to endure severe fuel scarcity as a result of the Nigerian National Petroleum Company Limited’s inability to offset suppliers.
This is as the NNPCL disclosed the “significant” debt it owes to petrol suppliers, admitting that this financial strain threatens the sustainability of fuel supply in the country.
Despite previous attributions of logistics challenges and flooding as causes for supply shortages, the company’s spokesman, Olufemi Soneye, revealed that the debt poses considerable pressure on NNPCL.
Soneye said:
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“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.”
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Nigeria, with its non-operational state-owned refineries, relies heavily on imported refined petroleum products.
The removal of subsidies in May 2023 tripled petrol prices, exacerbating the challenges faced by citizens who rely on petrol for vehicles and generators due to the country’s epileptic electricity supply.
Consequently, the government’s unification of forex windows has led to a great devaluation of the naira, causing prices of food and basic commodities to skyrocket.
Notably, the Independent Petroleum Marketers Association of Nigeria (IPMAN) revealed the impossibility of importing petrol due to the high landing cost, which exceeds N1,200 per liter, making it unsustainable for marketers.
However, there is hope on the horizon with the recent commencement of operations at Aliko Dangote’s $20 billion refinery facility in Lagos, which aims to achieve full capacity by the end of the year.
The refinery, capable of producing 350,000 barrels a day, has already begun supplying diesel and aviation fuel to marketers and is expected to commence petrol supply soon, potentially alleviating some of the pressure on NNPCL and the country’s fuel supply.
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