• Oil & Gas - News
  • Updated: April 08, 2024

NNPC faces $3bn debt over imported fuel

NNPC faces $3bn debt over imported fuel

The Nigerian National Petroleum Company Limited (NNPCL) faces a significant financial burden, owing oil traders a substantial $3 billion for imported petrol, as reported by Reuters.

NNPC, the primary importer of petrol, is taking more than 130 days to settle payments, contrary to the standard 90-day period.

This revelation highlights the challenges confronting NNPC, including the gradual phasing out of fuel subsidies since May 2023, which has strained its import budget.

Escalating global fuel prices and the depreciation of the national currency further exacerbate NNPC's financial predicament.

Recent data shows a surge in crude oil prices to nearly $90 per barrel, significantly increasing costs for NNPCL in importing petrol.

In February, petrol prices in West Africa soared to N1,229 per litre, a 150% increase from the government's price cap set in June.

Although prices have slightly declined to around N912 per litre, they still exceed the capped price by N295.

Despite these challenges, NNPC denies providing subsidies for imported petrol.

Mele Kyari, NNPC's Group Chief Executive Officer, asserts that the company aims to recover the full cost of imported products without engaging in subsidy payments, amid the global surge in Brent Crude oil prices.

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