Wale Edun, minister of finance has announced there are plans by Nigeria National Petroleum Company (NNPC) to resolve the state owned company’s $6 billion debt related to petrol supply.

During an engagement with investors in Washington DC, Edun emphasised that addressing this debt is a top priority for NNPC, which has faced increasing pressure from suppliers and stakeholders due to the outstanding obligations.

“In terms of NNPC and their situation, the reality is that, although the subsidy on May 29, 2023, was removed and was no longer on the balance sheet of the government, it did rear its head, not in terms of petrol subsidy, but foreign exchange subsidy, which was borne elsewhere, and borne mainly by NNPC,” the minister said.

He added, “I think what I can say about their own situation is with where they are now, they have a route to paying down their payables and I’m sure that in no time at all, they will start. From what I understand, they have even commenced the process of paying down their payables.”

BusinessDay’s findings showed that NNPC owes around $6 billion to international traders for imported petrol as traders say the state-owned company is taking more days to make payment instead of within 90 days.

NNPC’s mounting debt, which includes overdue payments exceeding $4 billion-$5 billion for January imports alone, forced international petrol suppliers to cease participating in recent tenders. (BusinessDay)