NNPC Ltd has commenced clearing $6.8bn petrol supply debt — Minister 

Indications have emerged that the Nigerian National Petroleum Company (NNPC) Limited has commenced the process of paying the $6.8 billion debt owed to suppliers.

The Minister Of Finance and Coordinating Minister Of The Economy, Wale Edun dropped this indication during an engagement with investors in Washington DC on the sidelines of the 2024 annual meetings of the International Monetary Fund (IMF) and the World Bank.

On September 1, 2024, the NNPC Ltd after several denials finally admitted to owing the sum of $6.8 billion to suppliers of Premium Motor Spirit (PMS) popularly known as petrol.

Addressing a question on the supply arrears the NNPC Ltd owes to refined petrol suppliers, Edun said the national oil firm has commenced clearing the debt while also 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.”