The Nigerian National Petroleum Company Limited (NNPC) has admitted its ongoing financial challenges are the reason for fuel scarcity and numerous queues in various filling stations.
According to the company, the constraint has made it difficult to import petrol needed to power vehicles, businesses, and homes as is the case in Nigeria.
NNPC spokesperson Olufemi Soneye said, “This financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply.”
In July, Reuters reported that NNPC’s debt to oil traders stood at an estimated $6 billion.
This is largely due to the company managing the difference between fixed pump prices and rising global fuel costs.
The federal government through the NNPC had sought to maintain a fixed pump price following the removal of the fuel subsidy that pushed petrol prices from N162 per litre to around N1000 in some states.
While the scarcity has caused widespread frustration among Nigerians, citizens are struggling to understand why the NNPC has yet to empower Dangote Refinery with the necessary crude oil for its 650,000 per day production capacity.
The NNPC has stated that it is collaborating with government agencies and stakeholders to ensure the continuity of fuel supply across the nation.
With NNPC’s financial constraints and rising debt, its ability to meet the nation’s energy demands remains in question.