The Nigerian National Petroleum Corporation (NNPC) has acknowledged a significant debt to fuel suppliers, which has strained the company's operations and led to a nationwide fuel scarcity.
The debt, estimated to be around $6 billion according to local media, has forced suppliers to reduce fuel deliveries to the NNPC, resulting in long queues at gas stations across the country.
"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," said the statement.
The falling value of the naira, rising international crude oil prices, and increased operational costs have further exacerbated the NNPC's financial challenges.
Threat to energy security
Despite the company's efforts to maintain a consistent fuel supply, the debt crisis has posed a significant threat to the country's energy security.
"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," the statement added.
Opposition politician Atiku Abubakar has called for greater transparency and accountability from the NNPC, demanding that the company be listed on the stock exchange in line with the Petroleum Industry Act (PIA).
Abubakar, in a statement on X signed by his media adviser Paul Ibe, criticised the NNPC's lack of transparency and its continued reliance on government support.
He also highlighted the challenges faced by previous attempts to privatise Nigeria's refineries, citing corruption and government interference as major obstacles.
The NNPC's financial crisis and the ongoing fuel scarcity have underscored the urgent need for reforms and increased transparency in Nigeria's energy sector.
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