State oil company, the Nigerian National Petroleum Corporation (NNPC) Limited, has admitted that it is facing financial strain, and that debts owed international oil traders is a major factor in the ongoing fuel scarcity across the country.
There had been reports that NNPC was indebted to oil suppliers to the tune of $6.8 billion in subsidy debts, making it challenging for the corporation to procure imported petrol products.
The cooperation in a statement released on Sunday by its spokesperson Olufemi Soneye, confirmed reports attributing the fuel shortage to supply disruptions caused by outstanding debt obligations to international oil traders.
While NNPC did not, however, disclose the exact amount owed to these oil traders
"NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company's significant debt to petrol suppliers. This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply," the statement read.
"In line with the Petroleum Industry Act (PIA), NNPC Ltd. remains dedicated to its role as the supplier of last resort, ensuring national energy security. We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide."
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