The Nigerian National Petroleum Company (NNPCL) has admitted that it is faced with serious financial challenges due to the cost of supplying Premium Motor Spirit (PMS), also known as petrol.
The company, in a statement on Sunday, said the situation has been affecting the sustainability of its supply operations.
It also acknowledged recent reports in some national newspapers regarding the company’s significant debt to petrol suppliers, adding that the financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply.
The media reports had disclosed a $6 billion debt the NNPCL owes petrol suppliers, which has worsened petrol scarcity in Nigeria, especially since the beginning of 2024.
But at different times, the NNPCL blamed logistics challenges and flooding, amongst others, for the supply shortages of the essential commodity.
The NNPCL in the statement also revealed that in line with the Petroleum Industry Act (PIA), it remains dedicated to its role as the supplier of last resort, ensuring national energy security.
The statement was signed by its Chief Corporate Communications Officer (CCO), Mr. Olufemi Soneye.
The statement said: “NNPC Ltd faces financial strain due to PMS supply costs.
This financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply.
“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.
“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."
Meanwhile the pump price of petrol has risen to N1,000 in most petrol stations across the country while same sells for more at rural areas.
Only NNPCL stations sell the product for N591 with people spending days to buy it due to the long queues in those stations while black marketers have been smiling to the bank in most cities for selling fuel at very outrageous sums.
The high cost of fuel has forced the hike of goods and services, particularly food items in the market and has also led to the increase by over a 100 per cent the cost of road transportation in the country.
