The Nigeria National Petroleum Company Limited (NNPCL) is grappling with a severe fuel supply crisis, as global petrol suppliers grow increasingly hesitant to extend credit due to an escalating debt of over $6 billion. This financial strain has led to significant disruptions in fuel distribution across Nigeria, causing widespread shortages and long queues at petrol stations.
According to industry insiders, at least five vessels scheduled to deliver petrol to Nigeria have refused to unload, fearing non-payment upon delivery. This situation has forced NNPCL to ration its existing fuel supply and plead with long-standing suppliers to continue their deliveries, despite the mounting debts. A senior NNPCL official, speaking on condition of anonymity, confirmed the company’s struggles, noting that bulk sales to depot owners have slowed down over the past few days due to product shortages.
In a bid to alleviate the crisis, the Federal Government intervened in mid-August, providing NNPCL with $300 million to settle part of its outstanding debts. However, this measure only offered temporary relief, with the fuel shortages quickly reemerging. NNPCL’s Chief Corporate Communications Officer, Femi Soneye, acknowledged the reliance on credit transactions in the global oil industry but did not disclose the total amount owed to suppliers, emphasizing the complexity and standard nature of trading on credit in this sector.