The Nigerian National Petroleum Company Limited (NNPCL) has officially commenced efforts to settle its $6 billion debt, according to Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister for the Economy. Edun made the announcement during a meeting with investors in Washington, D.C., on Wednesday, October 23, addressing growing concerns about NNPCL’s financial situation.
During the meeting, Edun acknowledged the financial strain NNPCL has faced due to its outstanding obligations to suppliers, despite the removal of the fuel subsidy in May 2023. He noted that while the fuel subsidy was no longer a burden on the government’s balance sheet, the company encountered new challenges related to foreign exchange costs.
“The reality is that although the subsidy was removed on May 29, 2023, and is no longer on the government’s balance sheet, it did rear its head—not in terms of petrol subsidy, but foreign exchange subsidy, which was borne elsewhere, mainly by NNPC,” Edun explained.
The minister confirmed that NNPCL is now on a clear path to addressing its debts. “They have a route to paying down their payables, and from what I understand, they have even commenced the process of settling their obligations,” he added.
NNPCL’s mounting debt, reportedly exceeding $6 billion, has raised concerns about the company’s financial stability. The company has previously admitted facing difficulties in maintaining supply costs amidst its growing debt.
The Nigerian government’s announcement is expected to provide reassurance to both domestic and international investors regarding NNPCL’s efforts to regain financial stability and resolve its outstanding debts.
