FG Gives Update on NNPC’s $6 Billion Debt to Marketers, Others, States Timeline to Repay
- The Nigerian government, via Wale Edun, minister of finance, has assured that NNPC will offset the $6 billion debt owed to petrol suppliers
- The minister said that the company has faced severe challenges but has a pathway to repay the debt
- The NNPC initially denied owing $6 billion to petrol suppliers but later admitted after several media backlash
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The minister of finance and coordinating minister for the economy, Wale Edun, has said plans are underway to offset the $6 billion debt the Nigerian National Petroleum Company Limited (NNPC) owes to petrol suppliers.
Edun disclosed this during an engagement with investors in Washinton, stressing that addressing the debt is a top priority for the state oil firm. Due to outstanding obligations, the firm faces rising pressure from suppliers and industry stakeholders.
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NNPC admits owing suppliers $6 billion
The minister said the reality with the firm in charge of Nigeria’s oil assets is that despite the removal of the petrol subsidy, the debt was due to the FX subsidy carried elsewhere by the NNPC.
A BusinessDay report said that Edun disclosed that the oil industry regulator has a route to paying down their payables, stating that he is confident it will pay in no time.
The debt the oil firm accumulated from petrol purchases has caused controversies, as it initially denied owing the amount and later admitted it.
Dangote begins direct petrol supply to marketers
Findings revealed that NNPC owes $6 billion to international traders for imported petrol. Marketers say the company takes more days to pay than the 90 days stipulated.
The company’s growing debt, which includes $4-$5 billion overdue January imports alone, caused international suppliers to halt participating in recent tenders.
The development came as the Dangote Petroleum Refinery began supplying petrol to some oil marketers without resorting to the Nigerian National Petroleum Company Limited (NNPC).
The development comes as marketers strengthen their move to purchase the product directly from the facility, as others import petrol. Reports say over 123 million litres will hit the market in the coming weeks.
Marketers import 123 million litres of petrol
Legit.ng earlier reported that four vessels loaded with PMS arrived at the Lagos and Calabar ports between Friday, October 18 and Sunday, October 20, 2024.
According to the report, the Nigerian Ports Authority (NPA) document showed that about 123.4 million litres of petrol were docked at the two ports to boost the nationwide petrol supply.
Also, an earlier report said dealers intend to import the product to supplement supply from the Dangote Refinery.
Dangote Refinery sells petrol at an affordable price
Punch reports that a senior official at the 650,000bpd-capacity refinery confirmed that marketers can purchase petrol directly from the refinery on a willing-buyer, willing-seller arrangement.
The report said marketers are already coming to the plant to lift petrol and not via a third party.
The source also said that the price at which the refinery sold the product to the marketers was favourable.
The source reportedly said that the refinery management reached an agreement with some marketers. However, the source refused to disclose the price.
NNPC sells crude oil to Dangote refinery in Naira
Legit.ng previously reported that the Dangote refinery had received four crude oil cargoes from the Nigerian National Petroleum Company Limited (NNPC) under the naira-for-crude deal.
The cargoes were reportedly delivered to the facility in the last three weeks when the Nigerian government began selling crude to local refineries in naira.
Punch quoted sources as revealing that the refinery was still expecting more cargo from the state oil company.
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Source: Legit.ng
