Global Petrol Suppliers Refuse Credit To NNPCL Over $6 Billion Debt Concerns

Abuja, Nigeria – Global petrol suppliers have shown a growing reluctance to continue supplying petrol on credit to the Nigerian National Petroleum Company Limited (NNPCL) due to mounting unpaid debts.

According to reliable industry sources, the NNPCL, responsible for the sole importation of petrol into Nigeria through various supply agents, is currently facing a debt crisis amounting to over $6 billion.

The debts, which have accumulated over time, have raised concerns among international suppliers about the company’s ability to meet its financial obligations.

Vanguard reports that recent setbacks are reportedly behind the persistent fuel supply disruptions in Nigeria.

Sources familiar with the situation revealed that at least five vessels, scheduled to deliver petrol to the Nigerian National Petroleum Company Limited (NNPCL), have refused to offload due to concerns they wouldn’t receive payment upon delivery.

An insider explained that the rising debt has put significant pressure on the NNPCL, leading the company to ration its existing stock and appeal to long-term suppliers to maintain their deliveries.

A senior NNPCL official, who requested anonymity, admitted that the company is struggling to supply fuel to dealers due to product shortages.

“Bulk sales of ships and trucks to depot owners have slowed down over the last five days due to the limited supply,” the official said.

The source added that no bulk sales had occurred since Tuesday, exacerbating the scarcity in the downstream sector.

Another NNPCL staff member disclosed that the ongoing fuel shortage, which has caused long queues for the past two months, is primarily due to suppliers reducing their deliveries because of unpaid debts.

A top official acknowledged that in mid-August, the Federal Government intervened by providing about $300 million to the NNPCL to settle some outstanding liabilities and reassure suppliers.

However, the official noted, “This amount only provided temporary relief for about a week before the queues returned.”

In response, NNPCL’s Chief Corporate Communications Officer, Mr. Femi Soneye, stated that trading on credit is common in the global oil industry but declined to elaborate further.

Soneye explained, “In the oil trading business, transactions are often carried out on credit, so it’s normal to have outstanding balances at certain times. Through our subsidiary, NNPC Trading, we maintain open trade credit lines with several traders.”

When asked to confirm the exact amount owed to PMS suppliers, Soneye declined, saying, “I will need some time to provide you with the exact amount.”