Nigeria’s National Petroleum Company (NNPC) is set to tackle its mounting $6 billion debt tied to petrol supply, according to Finance Minister Wale Edun. The announcement was made during an investor engagement in Washington, D.C., where Edun highlighted the company’s commitment to resolving its financial obligations amid growing pressure from international traders and stakeholders.
Addressing the state-owned company’s debt crisis, Edun explained, “Although the subsidy on May 29, 2023, was removed and no longer on the government’s balance sheet, it reappeared not as a petrol subsidy but as a foreign exchange subsidy, which was mainly borne by NNPC.”
The company, which owes international petrol traders for imported fuel, has faced criticism for extending its payment timelines beyond the standard 90-day window. This has led to overdue payments surpassing $4 billion to $5 billion for imports in January alone, with some suppliers withdrawing from recent tenders.
Edun assured investors that NNPC has begun taking steps to pay down its debt. “What I can say about their situation is that they now have a route to addressing their payables. From what I understand, they have even commenced the process,” he said.
The resolution of this debt is critical for NNPC as it faces increasing scrutiny from global petrol suppliers and risks further supply chain disruptions if payments continue to lag.
