Preliminary signs indicate a potential hike in filling station pump prices for premium motor spirit, or petrol, as the Nigerian National Petroleum Company Limited has finally acknowledge that its $6 billion debt has caused problems.
Following weeks of denial, the NNPC officially acknowledged on Sunday that it owes its fuel suppliers $6 billion, claiming economic challenges brought on by the high cost of fuel.
The state-owned energy corporation quietly acknowledged that the debt was the cause of the fuel lines at gas stations across the nation in a statement released by Olufemi Soneye, Chief Corporate Communications Officer, adding that it was having an effect on the sustainability of the suppl
In July that Nigeria’s debt to suppliers of petrol surpassed $6bn, making the NNPC struggle to cover the gap between fixed pump prices and internationa. Large Imported Petrol Consignment To Hit Nigeria
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The company had still not paid for some January imports, traders said, and the debt keeps piling up. Under contract terms, NNPC is meant to pay within 90 days of delivery.
“The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,” one industry source said.
Since June, Nigeria’s tenders to buy PMS were smaller, traders said.The national oil firm purportedly started having challenges early this year as late PMS payments exceeded $3 billion, according to a report
According to dealers, the corporation has not paid for any of the products from January yet, and the debt is continually rising. NNPC is required by contract to make payment within ninety days of delivery.
From two in July, three more traders were said to have stopped supplying PMS to the NNPC as of now, making a total of five unpaid traders.
