Global Petrol Suppliers Reluctant to Extend Credit to NNPCL Amid Rising Debts
Abuja, Nigeria – Global petrol suppliers are increasingly hesitant to extend credit to the Nigeria National Petroleum Company Limited (NNPCL) due to mounting debts, which have reportedly exceeded $6 billion. This development is contributing to the persistent fuel supply disruptions across the country.
Industry insiders revealed that the NNPCL, which relies on supply agents for importing petrol, is struggling to meet its obligations, leading to a reluctance among suppliers to continue credit-based transactions. As a result, at least five vessels, initially scheduled to deliver petrol to Nigeria, have refused to offload their cargo, citing concerns over non-payment.
The company, now under pressure, is resorting to rationing its existing stock while appealing to long-term suppliers to maintain supply lines. A senior NNPCL official, speaking on condition of anonymity, admitted that the shortage of available products has significantly slowed down bulk sales to depot owners, exacerbating the ongoing fuel scarcity in the downstream sector.
The source further disclosed that the Federal Government intervened in mid-August by providing approximately $300 million to settle some of the outstanding liabilities, temporarily boosting supplier confidence. However, this intervention only provided a brief reprieve, with fuel shortages and long queues returning shortly thereafter.
Femi Soneye, Chief Corporate Communications Officer of NNPCL, acknowledged that credit trading is a standard practice in the global oil industry but declined to specify the exact amount owed to suppliers. “In the oil trading business, transactions are often carried out on credit; so it is normal to have outstanding balances at certain times,” Soneye stated, adding that more time would be needed to provide precise figures on the company’s debt.
