A ray of hope to premium motor spirit (PMS), or petrol supplier it is, as Wale Edun, the minister of finance and coordinating minister of the economy, reveals that the Nigerian National Petroleum Company (NNPC) Limited, has kick the process of paying the $6 billion debt owed them.
The above was made known by the Minister on Wednesday at an engagement with investors in Washington DC, the United States capital.
Following the International Monetary Fund (IMF), and World Bank’s annual meetings event, which saw a global investors’ forum by the side, Wale Edun made some assertions on the NNPC and Suppliers outstanding.
In response to a question that was asked the minister on the supply arrears owed petrol suppliers by NNPC, Edun said the national oil firm would soon start clearing the debt, making clarification on the petrol subsidy removal announced earlier in the year, as follows:
“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 revealed.
“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.”
Recall that on September 1, the NNPC had admitted to owing the sum of $6 billion to suppliers of petrol, or popularly put, premium motor spirit (PMS).
Olufemi Soneye, the company’s chief corporate communications officer, added that the NNPC is facing a serious financial strain due to the petrol supply costs, a development that is affecting the company’s ability to sustain PMS supply.
