Business

REVEALED: How $6 Billion NNPC Debt Is Causing Petrol Supply Hiccups

Published

1 year ago

September 1, 2024

Global suppliers of petrol are no longer enthusiastic about supplying the product on credit to the Nigeria National Petroleum Company Limited (NNPCL) due to piling debts, Sunday Vanguard has learnt.

Competent industry sources told our correspondent last night that NNPCL, which solely imports the product using supply agents, is apparently weighed down by over $6 billion in debt, which the firm has not settled over time.

The setback, according to informed sources, is apparently responsible for the lingering hiccups in fuel supply in recent weeks, our correspondent gathered.

One of the sources familiar with the PMS importation into the country revealed that, at the moment, no fewer than five vessels which were primed to supply petrol to Nigeria have refused to discharge the product to NNPC due to fear that they would not be paid cash on delivery.

The insider pointed out that the mounting debt has heightened the pressure on the petroleum company, which has now resorted to rationing its stock and appealing to its long-term suppliers to not cut off supply.

A senior official at the NNPC, who spoke on the condition of anonymity, said the company is struggling to supply dealers due to a shortage of products at its disposal.

The official lamented: “Bulk sales of ships and trucks to depot owners have slowed down in the last five days due to shortage of supply”.

The source added that no bulk sales had taken place since Tuesday, resulting in the scarcity in the downstream sector.
Another NNPC staff told this newspaper that fuel shortage, which resulted in the long queues being experienced in the last two months, was principally caused by the reduction in supply of products by suppliers who are being owed by the Nigerian oil firm.

The top official admitted: “I was aware that at some points in mid-August, the Federal Government had to come in by giving money to NNPC to defray some of the outstanding liabilities and boost the confidence of the suppliers to continue.

“However, what was paid was about $300 million, which only helped us get some reprieve for about a week before the queues fully returned,” he said.

Credit transaction common in the oil business – NNPC
Responding, the Chief Corporate Communications Officer of NNPCL, Mr Femi Soneye, said it was a common practice in the global oil industry to trade on credit but would not say more than that.

Soneye said: “In the oil trading business, transactions are often carried out on credit; so it is normal to have outstanding balances at certain times.

“Additionally, through our subsidiary, NNPC Trading, we maintain open trade credit lines with several traders.”

But when asked to confirm the exact amount the company owes its PMS suppliers, the spokesperson declined, saying, “I will need some time to provide you with the exact amount”.
VANGUARD

Business

NNPCL Revenue, Profit Soar To N5.08tn, N447bn In October

Published

3 days ago

November 29, 2025

Editor

The Nigerian National Petroleum Company Limited has announced a significant revenue increase to N5.078 trillion for October 2025.

The state-owned firm disclosed this in its monthly financial report released on Saturday.

According to the financial report, from N5.078 revenue in October, the company posted a N447 profit after tax.

The figure represents a significant 19.2 percent increase in revenue from N4.26 trillion and a 106 percent rise in PAT from N216 billion in September 2025.

The report stated that from January to September, NNPCL paid N11.150 trillion in statutory payments to the federation.

Four days ago, NNPCL posted a total of N45.1 trillion as total revenue for the 2024 financial year.

Business

NNPCL Reveals Reason Behind N5.4trn Profit After Tax

Published

3 days ago

November 29, 2025

Editor

The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, NNPCL, Bayo Ojulari, has explained that the state-owned firm’s N5.4 trillion profit after tax declaration in its 2024 financial statements indicates that the country has begun to reap the benefits of the Petroleum Industry Act.

He made this explanation in an interview released on NNPCL’s X account on Friday.

Recall that NNPCL declared a significant N5.4 trillion PAT from a total revenue of N45.1 trillion in 2024.

Reacting, Ojulari said the earnings result demonstrated the state-owned firm’s commitment to transparency.

“This earning is our first step in going out there to make ourselves more visible and demonstrate our commitment towards transparency. The profit of N5.4 trillion is quite significant. What that indicates is that we are beginning to reap the benefits of the Petroleum Industry Act.”

According to DAILY POST, since Ojulari’s appointment in April 2025, NNPCL has been consistent in making its monthly financial records public.

Business

CBN Directs Nigerian Banks To Withdraw Misleading Advertisement

Published

4 days ago

November 28, 2025

Editor

The Central Bank of Nigeria (CBN) has directed Nigerian banks, payment service banks and other financial institutions to immediately withdraw all advertisements that violate consumer-protection rules.

The directive, issued in a circular dated Thursday and signed by Olubunmi Ayodele-Oni, director of the CBN’s compliance department, followed a review of marketing practices in the financial sector.

The apex bank said the assessment revealed inconsistencies in how institutions apply disclosure, transparency and fair-marketing requirements.

The CBN ordered the removal of all non-compliant adverts and warned that future promotional materials must be factual, balanced and transparent.

It banned misleading claims, exaggerated benefits, incomplete information, unaudited financial results and comparative language that could de-market competitors.
The regulator of Nigeria’s financial sector also prohibited chance-based promotional inducements such as lotteries, prize draws and lucky dips.

Accordingly, institutions submitting adverts for prior notification must now include campaign timelines, creative materials, target audience details and written confirmation of internal legal and compliance clearance, along with proof that the underlying product has CBN approval.

The bank clarified that such notifications are only for monitoring and do not amount to approval.
All affected institutions must file a compliance attestation within 30 days, signed by the chief executive and compliance leads.

The CBN added that beginning January 2026, it will conduct a follow-up review and apply sanctions for violations under BOFIA 2020 and the Consumer Protection Regulations.