The Nigerian National Petroleum Company Limited, or NNPCL, has admitted to having significant debt to petrol suppliers, which it says is causing the current fuel queues across the country.
NNPCL spokesman Olufemi Soneye announced on Sunday that the financial strain from these debts is threatening the sustainability of Nigeria’s fuel supply. He stated that NNPCL is committed to maintaining energy security as the supplier of last resort and is working closely with government agencies and stakeholders to ensure a steady supply of petroleum products.
Nigeria’s fuel challenges are compounded by its non-operational state-owned refineries, making the country reliant on imported refined products. Since the removal of fuel subsidies in May 2023, petrol prices have skyrocketed from about ₦200 to around ₦1000 per litre.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria says the high landing cost of petrol makes it difficult for them to import, leaving NNPCL as the primary supplier. As fuel prices surge, Nigerians are also facing increased costs of food and other commodities due to the depreciation of the naira and inflation.
