The Nigeria National Petroleum Company Limited (NNPCL) reportedly owes approximately $3 billion to fuel traders for imported petrol, according to three sources informed by Reuters. The devaluation of the naira and the surge in global fuel prices have exacerbated the subsidy payments, creating challenges for the government’s efforts to stabilize its finances by reducing costly energy subsidies.
Despite efforts to make payments, the process is slow, with NNPC taking over 130 days to settle bills instead of the standard 90 days, as indicated by five sources familiar with the matter. This delay in payments poses a setback to the government’s economic objectives.
An NNPC spokesman denied knowledge of such a debt or significant financial issues, emphasizing the company’s commitment to ensuring an adequate supply of petroleum products in Nigeria.
Source: Daily Trust