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

Despite Denial of Subsidy Payment, FG Admits NNPC Facing Bankruptcy

467

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

NewsWorld

Nigerian U.S. Embassy and ICIR Cancel Training on “Foreign Influence” in Nigeria After WAW’s Report, Trump’s Foreign Policy Shift

A controversial U.S.-funded media training programme in Nigeria through the International Centre...

CSS tariff
News

CSS Heads to Moscow for Strategic Consultations with Russia

The foreign ministers of the Confederation of Sahel States (CSS), comprising Burkina...

Angola and DRC conflict
NewsSecurity

DR Congo, M23 Rebels to Hold First Direct Talks in Qatar on 9 April

The Democratic Republic of Congo (DRC) and M23 rebels will hold their...

U-17 Africa Cup
NewsSports

CAF U-17 Nations Cup: Golden Eaglets Absent as Morocco Thrash Uganda in Opener

The TotalEnergies U-17 Africa Cup of Nations is underway in Morocco, and...