Wale Edun, the minister of finance and coordinating minister of the economy, says the Nigerian National Petroleum Company (NNPC) Limited has commenced the process of paying the $6 billion debt owed to suppliers.
Edun spoke on Wednesday during an engagement with investors in Washington DC.
The global investors’ forum was held on the sidelines of the 2024 annual meetings of the International Monetary Fund (IMF) and the World Bank.
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Addressing a question on the supply arrears the NNPC owes to refined petrol suppliers, Edun said the national oil firm would soon start clearing the debt, making clarification on the petrol subsidy removal announced earlier in the year.
“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.
“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.”
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On September 1, the NNPC had admitted to owing the sum of $6 billion to suppliers of petrol, also known as premium motor spirit (PMS).
Speaking on the issue, Olufemi Soneye, the company’s chief corporate communications officer, said the NNPC is facing a serious financial strain due to the petrol supply costs — a development that is affecting the company’s ability to sustain PMS supply.
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