The Nigerian National Petroleum Company (NNPC) has admitted to facing unsustainable financial burdens, casting a dark shadow over the country’s fuel supply. Despite efforts to maintain a consistent supply of petroleum products, the company’s debt to suppliers has ballooned to over $6 billion, doubling since April 2024.
The worsening fuel scarcity has led to long queues, skyrocketing prices, and increased transport costs, with experts warning of an imminent price hike to between N950 and N1,000 per liter. This would mark the fourth price increase in 15 months, putting immense pressure on the Federal Government to address the situation.
Analysts attribute the NNPC’s financial struggles to the government’s reluctance to allow petrol to be sold at an economic price, which would reduce the financial strain on the company and encourage private sector participation in fuel importation. Nigeria’s declining crude oil output has further complicated the situation, hampering the country’s capacity to import refined products.
As the NNPC navigates these financial challenges, Nigerians continue to bear the brunt of the fuel crisis, with no immediate relief in sight. The situation demands urgent attention from the government to prevent further economic hardship and social unrest.
