The Nigerian National Petroleum Company Limited (NNPC) has said it is grappling with severe financial challenges as it battles mounting debt to petrol suppliers, raising concerns over the sustainability of the nation’s fuel supply.
This comes not long after the company revealed a record-breaking net profit of ₦3.297 trillion for the financial year ending December 2023, marking a significant increase of ₦749 billion, or 28%, from the ₦2.548 trillion profit reported for 2022.
The company had also declared a substantial final dividend of ₦2.1 trillion.
In a press statement released on Sunday by the Chief Corporate Communications Officer, Olufemi Soneye, NNPC acknowledged reports circulating in national newspapers about its significant debt obligations.
The company revealed that the financial strain has placed immense pressure on its operations, posing a potential threat to its ability to maintain consistent fuel supply across the country.
“The financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply,” the statement read.
As the nation’s principal fuel supplier, NNPC plays a critical role in ensuring the availability of petroleum products, a responsibility underscored by the Petroleum Industry Act (PIA). The company reaffirmed its commitment to this duty, despite the current challenges, stating, “NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security.”
The company also disclosed that it is actively working with relevant government agencies and other stakeholders to navigate this crisis. “We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” Soneye further stated.
The statement comes amidst growing public concern over fuel availability, especially in light of recent fuel shortages that have caused widespread disruptions.
Ozioma Samuel-Ugwuezi
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