Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has announced that the Nigerian National Petroleum Company (NNPC) Limited is initiating the repayment of a $6 billion debt owed to its suppliers.
Gatekeepers News reports that this was disclosed on Wednesday during an engagement with investors in Washington, DC, coinciding with the global investors’ forum held alongside the 2024 annual meetings of the International Monetary Fund (IMF) and the World Bank.
In response to inquiries regarding the supply arrears owed to refined petrol suppliers, Edun clarified that the national oil firm will soon begin to settle these debts. This follows the earlier announcement about the removal of the petrol subsidy.
“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.”
The NNPC, on September 1, admitted to owing the sum of $6 billion to suppliers of petrol, also known as premium motor spirit (PMS).
