As fuel scarcity persists across the country, there are fears that the situation will not get any better as the Nigeria National Petroleum Company, NNPCL, admitted to being indebted petrol suppliers.
On Sunday, Olufemi Soneye, chief corporate communications officer of the oil company, in a statement said, “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.”
Soneye, however, added that “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.”
On Sunday, Vanguard Newspapers had reported that the NNPCL, which is the sole importer of petrol using supply agents, is weighed down by over $6 billion in debt, which the firm has not settled over time.
The weighty debt, going by the statement which is silent on the scale of the indebtedness, is apparently responsible for the lingering hiccups in fuel supply in recent weeks.
The newspaper quoting unnamed sources revealed that no fewer than five vessels which were primed to supply petrol to Nigeria have refused to discharge the product to NNPC due to fear that they would not be paid cash on delivery.
The mounting debt has heightened the pressure on the petroleum company, which has now resorted to rationing its stock and appealing to its long-term suppliers to not cut off supply.
Quoting a senior official at the NNPC, it was learnt that the company is struggling to supply dealers due to a shortage of products at its disposal.
The official lamented: “Bulk sales of ships and trucks to depot owners have slowed down in the last five days due to shortage of supply.”
This newspaper now understands that the fuel shortage resulting in the long queues being experienced in the last two months across the country was principally caused by the reduction in supply of products by suppliers who are being owed by the NNPCL.
Human rights lawyer, Femi Falana, SAN, appearing on Channels TV Sunday Politics expressed the worry that a price hike was imminent, charging Nigerians to brace up to challenge the government if that happens.
