Nigerian National Petroleum Company Limited Takes Steps to Repay $6 Billion Debt to Suppliers
The Nigerian government has made an important announcement regarding the country’s state-owned oil and gas company, the Nigerian National Petroleum Company Limited (NNPCL).
According to the Ministry of Finance, the NNPCL has started the process of repaying its outstanding debt of approximately $6 billion to its suppliers. This news was shared by Nigeria’s Minister of Finance and Coordinating Minister for the Economy, Wale Edun, during a meeting with investors in Washington, DC on Wednesday.
The NNPCL has been facing significant financial challenges in recent times, primarily due to the high costs associated with maintaining its supply operations and its substantial liabilities to oil suppliers, which currently exceed $6 billion. However, Edun expressed optimism about the company’s ability to recover from these challenges.
In his address, Edun highlighted the complexities surrounding the oil subsidy, stating that despite the removal of the petrol subsidy on May 29, 2023, the foreign exchange subsidy remains a significant burden, primarily shouldered by the NNPCL.
Regarding the company’s current situation, Edun reported that the NNPCL has found a path to pay off its outstanding debts and is already making progress. He further stated that the company has started the process of paying down its liabilities and is expected to do so shortly.
