NNPC finally admits debts owed to oil traders responsible for fuel scarcity

Nigerian National Petroleum Company (NNPC) Limited 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, a statement signed by the company’s Chief Corporate Communications Officer, Olufemi Soneye, on Sunday, said.

It said, “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.”

Nigeria is facing its third major fuel scarcity episode of 2024.

In August, NNPC Limited identified “distribution challenges” as the root cause of the crisis.

The scarcity, which began in early July, has left motorists and businesses grappling with long queues and inflated prices at filling stations across the country.

In the company’s statement in August, Soneye said that disruptions in berthing at jetties, truck load-outs, and petrol transportation to filling stations had impacted the supply chain.

Earlier, the NNPCL cited the flammability of petroleum products and adherence to Nigerian Meteorological Agency (NIMET) regulations, which prevent loading during rainstorms and lightning, as factors affecting operations.

Despite these challenges, the fuel scarcity persists with no immediate resolution in sight.

In its recent statement, the company expressed regret over the ongoing crisis.

Soneye attributed the “tightness in fuel supply” in parts of Lagos and the Federal Capital Territory (FCT) to distribution challenges.

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