The Nigerian National Petroleum Company Limited (NNPC) is confronting severe financial difficulties, struggling with substantial debt to fuel suppliers. This issue raises questions about the future stability of the nation’s fuel supply.
This financial strain comes on the heels of a record-breaking net profit of ₦3.297 trillion for the year ending December 2023, which represents a significant increase of ₦749 billion, or 28%, from the ₦2.548 trillion profit reported in 2022. Additionally, NNPC declared a notable final dividend of ₦2.1 trillion.
On Sunday, Olufemi Soneye, Chief Corporate Communications Officer, acknowledged detailing the company’s considerable debt obligations. The financial pressure has intensified operational challenges, threatening the consistency of the national fuel supply.
“The financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply,” Soneye stated.
As the primary fuel supplier in Nigeria, NNPC’s role is crucial in ensuring the availability of petroleum products, as mandated by the Petroleum Industry Act (PIA). Despite these challenges, the company affirmed its commitment to maintaining national energy security. “NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security,” the statement emphasized.
The company is actively collaborating with government agencies and other stakeholders to manage the crisis and ensure a stable supply of petroleum products. The statement addresses growing public concern over fuel availability, exacerbated by recent shortages causing widespread disruptions.
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