The Nigerian National Petroleum Corporation (NNPC) has admitted that its substantial debt to suppliers is endangering the sustainable fuel supply.
The nation’s oil company disclosed this in a statement posted on its X handle on Sunday, September 1, 2024.
NNPC highlighted that the financial strain is placing significant pressure on its operations and threatening the stability of fuel supplies.
The company, however, reaffirmed its commitment to its role as the supplier as a last resort under the Petroleum Industry Act (PIA), aimed at ensuring national energy security, adding that it was currently working with government agencies and key stakeholders to maintain a steady supply of petroleum products across Nigeria.
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The statement reads, “NNPC Ltd. acknowledges recent media reports concerning the company’s notable debt to petrol suppliers.
”This financial burden has exerted considerable pressure on the company and jeopardizes the sustainability of fuel supply.
”In accordance with the Petroleum Industry Act (PIA), NNPC Ltd. remains dedicated to its role as the supplier of last resort, committed to upholding national energy security.
We are actively collaborating with relevant government agencies and stakeholders to ensure a consistent supply of petroleum products nationwide.”
PRESS RELEASE
NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability
NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers. This financial strain has placed considerable… pic.twitter.com/HR1FP1gGzy
— NNPC Limited (@nnpclimited) September 1, 2024