Business

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

Published

2 years 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

Naira Depreciates At Official FX Market

Published

4 days ago

April 18, 2026

Editor

The Nigerian naira depreciated slightly against the United States (US) dollar, trading at N1,343.6398 per dollar at the Central Bank of Nigeria (CBN) official foreign exchange window on Friday, 17th April, 2026.

According to the data on the CBN’s official platform, the naira traded at the Nigerian Foreign Exchange Market (NFEM) rate of N1,343.6398/$per dollar and closed at N1,342.5000 per dollar.

When compared with the previous trading rate, the Nigerian currency traded at N1342.3037 on 16th April, 2026. With this, the Nigerian currency depreciated slightly by a minimum of N1.3.

At the parallel market, the naira-to-dollar exchange rate for the buying rate didn’t change while the selling rate increased by N3 when compared to that of the previous trading rate.

According to Aboki FX , the Naira-to-dollar exchange rate at the black market on Friday, 17th April, 2026, was N1,395 and N1,405 per dollar for buying and selling rate respectively.

Business

Crude Oil Prices Jump As Fear Mounts On Fresh Domestic Petrol Hike In Nigeria

Published

1 week ago

April 13, 2026

Editor

Crude oil prices surged by 7 percent on Monday amid United States President Donald Trump’s planned blockade of the Strait of Hormuz.

Checks by DAILY POST on Monday showed that West Texas Intermediate and Brent rose to $103 per barrel and $101 per barrel, respectively.

The latest crude price rally comes as US-Iran peace talks, reportedly orchestrated by Pakistan, collapsed.

Recall that President Trump, at the weekend, said via his Truth Social account that the US Navy will begin “BLOCKADING any and all ships trying to enter or leave the Strait of Hormuz.”

In response, Iran warned the US of the dangers of a Strait of Hormuz blockade.

The tension in the Strait of Hormuz has pushed crude oil prices higher.

The development has reignited concerns over a fresh domestic fuel price hike in Nigeria.

Petrol is currently being dispensed in Nigeria between N1,290 and N1,350 per litre across filling stations

Business

Nigerian Govt Announces New Tariffs, Cuts Duty On Rice, Cars, Drugs, Sugar

Published

1 week ago

April 12, 2026

Editor

The Federal Government has approved the implementation of the 2026 Fiscal Policy Measures, FPM, introducing sweeping changes to import tariffs aimed at stimulating growth across key sectors of the economy.

The approval was conveyed in a document dated April 1, 2026, and signed by the Minister of Finance, Wale Edun. The new policy replaces the 2023 FPM.

A major highlight of the policy is the review of import duties across 127 tariff lines, covering items such as rice, sugar, vehicles, and industrial inputs. The government said the reductions are designed to “promote and stimulate growth in critical sectors of the economy”.

Under the revised regime, the Import Adjustment Tax, IAT, on products like crude palm oil has been set at a total effective rate of 28.75 percent, down from higher rates under previous tariff structures.

In the automotive sector, tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, have been reduced to 40 percent from 70 percent as stipulated in the 2015 FPM.

To ease the transition, the government granted a 90-day grace period for importers who opened Form ‘M’ before April 1, allowing them to clear goods at the old rates.

However, the policy also introduces a new excise duty regime alongside a green tax surcharge, both scheduled to take effect from July 1, 2026.

Key Tariff Adjustments:

Here is a summary of details of the gazetted list outlining revised duties on several goods:

Antimalarial medicaments: 20%

Rice (bulk or >5kg): 47.5% (from 70%)

Broken rice: 30% (from 70%)

Wheat or meslin flour: 70%

Crude palm oil: 28.75% (from 35%)

Raw cane sugar: 55% (from 70%)

Cane/beet sugar (powder/granule): 57.5% (from 70%)

Margarine (excluding liquid): 40%

Refined salt: 55% (from 70%)

Envelopes: 40% (from 50%)

Diaries/notebooks: 30% (from 40%)

Unglazed ceramic tiles: 35% (from 40%)

Glazed ceramic tiles: 46.25% (from 55%)

Ceramic cubes (<7 cm): 35% (from 40%)

Steel and Industrial Inputs

Zinc-coated steel sheets: 35% (from 45%)

Aluminum-coated steel coils: 35% (from 45%)

Electroplated steel: 35% (from 45%)

Cold-rolled steel (<0.25% carbon): 15% Hot-rolled deformed steel bars: 35% (from 45%) Steel rods (5.5mm–14mm): 35% (from 45%) Other Key Adjustments: Electrical apparatus (e.g., fuses): 10% (from 20%) Railway/tramway locomotives (SKD/CKD): 0% (from 5%) Cargo ships (>500 tonnes): 0% (from 5%)

Breathing appliances and gas masks: 0% (from 5%)

Agricultural and manufacturing machinery: 0% (from 5%)

Modular surgical operating theaters: 5% (from 20%)

Air/vacuum pumps and compressors: 5% (from 10%)

Automatic circuit breakers: 10% (from 20%)

Lamp holders: 10% (from 20%)

Green Tax Exemptions:

The policy also outlines categories exempted from the planned green tax surcharge. These include –

Vehicles below 2000cc

Mass transit buses (heading 87.02)

Electric vehicles

Locally manufactured vehicles under specified headings (87.06–87.13)

The government said the overall reforms are part of efforts to balance revenue generation with economic stimulation, while supporting local industries and easing the cost of critical imports.