NNPC to Settle $6bn Petrol Supply Debt Soon, Says Finance Minister Wale Edun
By Okafor Joseph Afam
October 24, 2024
Wale Edun, Nigeria’s Minister of Finance, has revealed plans by the Nigerian National Petroleum Company (NNPC) to settle its $6 billion debt related to petrol supply.
Speaking during an engagement with investors in Washington, D.C., Edun underscored that resolving this debt is a major priority for the state-owned company. NNPC has faced mounting pressure from international suppliers and other stakeholders due to its outstanding obligations.
“In terms of NNPC and their situation, the reality is that, although the subsidy on May 29, 2023, was removed and was no longer on the balance sheet of the government, it did rear its head, not in terms of petrol subsidy, but foreign exchange subsidy, which was borne elsewhere, and borne mainly by NNPC,” the minister explained.
He further stated, “I think what I can say about their own situation is that they now have a pathway to clearing their payables, and I’m sure that in no time at all, they will begin. From what I understand, they have already started the process of paying down their debt.”
BusinessDay’s findings suggest that NNPC owes approximately $6 billion to international traders for imported petrol. Suppliers have expressed concerns as the company now takes significantly longer than the standard 90-day period to make payments.
This mounting debt, which includes overdue payments ranging between $4 billion to $5 billion for January imports alone, has led some international petrol suppliers to halt participation in NNPC’s recent tenders.
