Sources within the industry have revealed that the Nigerian National Petroleum Company Limited (NNPCL) is grappling with over $6 billion in unpaid debt, a burden that has significantly contributed to the ongoing fuel supply challenges in the country.

According to informed insiders, this mounting debt has led to persistent hiccups in petrol supply over recent weeks. One source with knowledge of the Premium Motor Spirit (PMS) importation process disclosed that at least five vessels scheduled to deliver petrol to Nigeria have refused to offload their cargo due to concerns that NNPC would be unable to make immediate payments upon delivery.

The situation has placed immense pressure on the petroleum company, which has now resorted to rationing its existing stock and pleading with its long-term suppliers to maintain their deliveries. A senior NNPC official, speaking anonymously, confirmed that the company is struggling to meet the demand from dealers due to a severe shortage of available products.

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

This slowdown in bulk sales, which has persisted since Tuesday, has exacerbated the scarcity in the downstream sector, leading to the long queues at petrol stations that have plagued the country for the past two months. Another NNPC staff member admitted that the primary cause of the fuel shortage is the reduction in supply from creditors who are owed substantial amounts by the Nigerian oil firm.

The top official further revealed that in mid-August, the Federal Government intervened by providing NNPC with approximately $300 million to partially settle outstanding debts and reassure suppliers. However, this payment offered only temporary relief, with fuel shortages and long queues quickly returning once the funds were exhausted.