The Nigerian National Petroleum Company (NNPC) Limited has confirmed the concerns raised in recent national newspaper reports about its substantial debt to fuel suppliers. This financial burden is straining the company’s operations and threatening the stability of fuel supply, according to a statement issued by the company’s Chief Corporate Communications Officer, Olufemi Soneye, on Sunday.
The statement emphasized that NNPC Ltd., in accordance with the Petroleum Industry Act (PIA), remains committed to its role as the supplier of last resort, striving to ensure national energy security. The company is working closely with relevant government bodies and stakeholders to sustain a steady supply of petroleum products across the country.
Nigeria is currently experiencing its third major fuel scarcity of 2024. In August, NNPC Limited attributed the crisis to “distribution challenges.” The shortage, which began in early July, has resulted in long queues and rising fuel prices at stations nationwide, affecting motorists and businesses alike.
Soneye explained in August that disruptions at jetties, issues with truck load-outs, and difficulties in transporting petrol to filling stations have all contributed to the supply chain problems. Additionally, adherence to Nigerian Meteorological Agency (NIMET) regulations, which restrict loading during rainstorms and lightning due to the flammability of petroleum products, has further complicated operations.
Despite these ongoing issues, the fuel scarcity continues with no immediate end in sight. In its latest statement, NNPC expressed regret over the persistent crisis and noted that the “tightness in fuel supply” in Lagos and the Federal Capital Territory (FCT) is primarily due to these distribution challenges.
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