NNPC Admits to Financial Strain Over PMS Supply Costs Despite N3.3 Trillion Net Profit 

A few weeks after declaring a net profit of N3.3 trillion in the 2023 financial year, with a purported increase of over N700 billion (28 per cent), the Nigerian National Petroleum Company Ltd (NNPC), has announced it is under intense financial pressure. With huge debt owed to petrol suppliers, and unprecedented pressure in sustaining fuel supply across the nation.

NNPC by the Petroleum Industry Act is saddled with the responsibility of the supplier of last resort, one of its most important roles in the context of national energy security.

In a statement issued on September 1, 2024, Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., affirmed reports about the financial situation concerning the company.

Despite this affirmation, he noted that NNPC  is working with relevant government agencies and the relevant stakeholders on ways to sustain adequate supply of petroleum products across the country.

“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” he added.

These financial pressure is in contrast to the recent announcement by NNPC about its highest net profit ever. The profit of N3.3 trillion for 2023 was said to be a landmark in the history of the company.

However, recent reports have shown that the government had secretly returned to paying fuel subsidies. Findings also revealed that the landing cost of Premium Motor Spirit, PMS, or petrol, has risen to over N1,000 in 2024 from N550 per litre in 2023 when Tinubu declared the total subsidy removal.

NNPC claimed that it had not paid any fuel subsidies in the last nine months, refuting claims of subsidising PMS costs. Speaking at a press briefing in Abuja, the Chief Financial Officer of NNPC Ltd., Alhaji Umar Ajiya, stated that no payments had been made to marketers or other entities under the guise of fuel subsidies.

He explained that NNPC Ltd. has been responsible for the importation of PMS, with the government instructing them to sell at a reduced price, creating a shortfall between the landing cost and the sale price.

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Oluwasegun Sanusi

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