Home News Despite Denial of Subsidy Payment, FG Admits NNPC Facing Bankruptcy
News

Despite Denial of Subsidy Payment, FG Admits NNPC Facing Bankruptcy

671

Bayo Onanuga, the Special Adviser on Information and Strategy to President Bola Tinubu, has said the Nigerian National Petroleum Company Limited (NNPCL) Limited admitted to having financial constraints because it can no longer subsidise petrol.

In an X post on Tuesday, he pointed out the NNPCL’s financial struggles and warned that if it continues to pay the difference between the landing cost and the pump price of petrol, the national oil company could face bankruptcy.

“NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent,” Onanuga stated.

He explained that the NNPCL’s debt situation has broader implications for the three tiers of government, which rely on the company’s payments into the Federation Account.

The NNPCL’s financial woes have hindered its ability to contribute to this account, raising concerns about the functioning of government operations.

He said the Dangote Refinery and other local refineries, including the government-owned Port Harcourt Refinery, are game-changers that could alleviate the crisis.

“When Dangote Refinery and other refineries, including government-owned Port Harcourt Refinery, come fully on stream, our country and economy will benefit on all fronts. Many good-paying jobs will be created along the value chain,” Onanuga noted.

It was earlier reported that the NNPCL increased the price of petrol to N855 per litre, claiming that the landing cost of Premium Motor Spirit (PMS) is around N1,200.

It will be recalled that the Tinubu’s administration has been criticised for its alleged covert continuation of subsidy on Premium Motor Spirit (PMS); even when the administration continues to deny the payment, the statement by NNPCL shows a stark disparity between the government’s claim and reality, in terms of payment of subsidy.

Read More:

About The Author

Related Articles

NewsTravel

Burkina Faso and Italy Sign Visa Exemption Agreement for Holders of Official Passports

Burkina Faso and Italy have taken a significant step toward strengthening bilateral...

NewsSecurity

EFF Raises Concerns Over Gun Violence in U.S. Ahead of 2026 FIFA World Cup

The Economic Freedom Fighters (EFF) has voiced deep concern over the escalating...

EducationNews

Nigeria Overhauls Technical Education Curriculum To Include Livestock, Aquaculture, Welding, And Fashion Design

The Federal Government of Nigeria has announced a reform of technical education,...

Ethiopia Inaugurates Africa’s Largest Hydroelectric Dam
NewsPolitics

Ethiopia Inaugurates Africa’s Largest Hydroelectric Dam

Ethiopia, a landlocked country located in the Horn of Africa region of...