…reports earlier stated that it owing $6billion debts to fuel suppliers
Amid excruciating fuel scarcity that has resulted in motorists sleeping in filling stations for days, the NNPC Ltd finally admitted on Sunday that it faces financial strain due to PMS Supply Costs, Impacting Supply Sustainability
This is coming after several days of denial by the company that it is not indebted to fuel suppliers despite reports that a $6 billion debt relating to fuel importation is hanging on its neck.
The bizarre fuel situation in an OPEC member country has become so embarrassing that queues around the filling station are more than one kilometer at stretch in many cases.
NNPC Ltd On Sunday in a tacit press release, signed by the Chief Corporate Communications Officer of NNPC Limited, Olufemi Soneye acknowledged that it owes petrol suppliers significant debts as reported by some national dailies “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.”
It is a known fact that NNPC Limited is selling below the product’s landing cost, which has created a huge gap in its finances and even the country as a whole.
Nigerian National Petroleum Company Limited (NNPCL) had denied allegations of owing international oil traders $6 billion.
According to Olufemi Soneye, NNPCL’s chief corporate communications officer, in reacting to news publications that the company is owing $6 billion in debt, he stated that while transactions in the oil trading business are often conducted on credit, the company maintains open trade credit lines with various traders.
He emphasised that NNPCL is fulfilling its financial obligations on a first-in-first-out basis.
It was also alleged that PMS importation into the country, at least five vessels originally intended for supply to Nigeria have refused to discharge fuel to NNPCL due to fear of payment.
Soneye however refuted all the allegations, explaining that though transactions in the oil trading business are often conducted on credit, the company maintains open trade credit lines with various traders.
This current fuel situation has escalated the cost of transportation and by extension the cost of food across the country
