$6.8bn debt admission sparks integrity concerns at NNPC

Nigerians were taken aback recently when the NNPC came out with so much gusto to admit a debt it had vehemently rejected on different occasions, raising concerns about the integrity of a company that released its 2023 financial report in the third quarter of 2024, reports DARE OLAWIN

The Nigerian National Petroleum Company Limited recently shocked many Nigerians when it admitted owing petrol suppliers. The masses were not surprised that the company was in debt; rather, they found it difficult to believe that after months of denial, a corporate company owned by the government could come out and admit the same claim.

Nigeria’s state-owned oil company admitted to owing $6.8bn. This stunning reversal raises questions about transparency, accountability, and the true state of the nation’s oil finances.

There have been reports that the NNPC owes its suppliers, hindering access to sufficient fuel supply. The PUNCH reported in July that Nigeria’s debt to petrol suppliers surpassed $6bn, making the NNPC struggle to cover the gap between fixed pump prices and international fuel costs.

A Reuters report stated that the national oil company began struggling early this year when late PMS payments surpassed $3bn. It was said that the company has still not paid for some January imports and the debt kept piling.

Since June, Nigeria’s tenders to buy PMS were smaller, traders said. From two in July, three more traders were said to have stopped supplying PMS to the NNPC as of now, making a total of five unpaid traders.

The spokesman of the oil company, Olufemi Soneye, denied claims of unpaid debt to PMS suppliers on several occasions. In August, he issued a statement to deny emphatically that the NNPC owed international oil traders $6.8bn.