The Federal government of Nigeria has confirmed that the Nigerian National Petroleum Company Limited (NNPCL) has begun settling its $6 billion debt.
This announcement was made by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, during an investor meeting in Washington, DC, on Wednesday.
Addressing the issue, Edun explained, “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 NNPCL.” He added that the debt, owed to suppliers, has been a major strain on NNPCL’s finances.
Despite these challenges, Edun reassured investors that NNPCL has devised a plan to address its financial obligations. “What I can say about their situation now is that they have a route to paying down their payables, and I’m sure that in no time, they will start,” he said, emphasizing that the debt repayment process has already begun. “From what I understand, they have even commenced the process of paying down their payables.”
This development comes as NNPCL continues to navigate financial hurdles linked to maintaining supply chains and foreign exchange subsidies, signaling the company’s commitment to stabilizing its financial standing.
