The Nigerian National Petroleum Company (NNPC) Limited has commenced the repayment of a significant $6 billion debt owed to suppliers, according to the country’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Minister Edun made this announcement during a meeting with investors in the U.S. capital on the sidelines of the 2024 annual meetings of the International Monetary Fund (IMF) and the World Bank.
The revelation came amidst growing concerns about the NNPC’s financial stability and its capacity to sustain petrol supply to the domestic market.
The company had previously acknowledged owing the substantial debt to suppliers of premium motor spirit (PMS).
Addressing the issue of ongoing foreign exchange subsidies, Minister Edun clarified that “In terms of NNPC and their situation, the reality is that, although the subsidy on May 29, 2023, was removed and was no longer on the balance sheet of the government, it did rear its head, not in terms of petrol subsidy, but foreign exchange subsidy, which was borne elsewhere, and borne mainly by NNPC,” the minister said
Expressing optimism about the company’s future, Minister Edun stated, “I think what I can say about their own situation is with where they are now, they have a route to paying down their payables and I’m sure that in no time at all, they will start.
“From what I understand, they have even commenced the process of paying down their payables,”he said.
Boluwatife Enome
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