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Akinwande Soji-Ojo
The Nigerian National Petroleum Company (NNPC) Limited has admitted to owing its suppliers of premium motor spirit (PMS) the sum of $6 billion.
In a statement on Sunday by its Chief Corporate Communications Officer, Olufemi Soneye, NNPC said it is facing financial strain due to the petrol supply costs, adding that this is affecting the company’s ability to sustain PMS supply.
Earlier on Sunday, some Nigerian newspapers reported that the lingering petrol scarcity in many parts of the country has been worsened by a $6 billion debt NNPC owes suppliers.
There have been reports of petrol scarcity since May, with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) blaming it on contractual issues between mother and daughter vessels.
NNPC had on July faulted flooding and weather concerns, as well as a hitch in the discharge operations of a couple of vessels for the lingering petrol scarcity.
While admitting to the debt on Sunday, NNPC said the financial strain threatens the supply of petrol.
“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,” Soneye said
Recall that Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), had on August 26 said NNPC was selling petrol below the landing cost.
Also, Umar Ajiya, the Chief Financial Officer (CFO) of NNPC, said the company was selling petrol at only half the land cost.
The official pump price of petrol is about N600/litre but the landing cost is around N1,200.
According to Ajiya, it cost NNPC N7.8 trillion to subsidise PMS from January to July.
