Presidential aide Bayo Onanuga revealed that the Nigerian National Petroleum Company Limited (NNPCL) has acknowledged its financial struggles due to the inability to continue subsidizing petrol. Onanuga, the Special Adviser on Information and Strategy to President Bola Tinubu, shared this in a post on X on Tuesday.
He explained that if NNPCL continues to cover the difference between the landing cost and retail price of petrol, the company risks bankruptcy. Onanuga emphasized that NNPCL’s growing debt stems from its efforts to shield Nigerian consumers from rising petrol costs, rather than any government misrepresentation.
“NNPC recently raised alarms because it can no longer sustain the price differential without risking insolvency,” Onanuga stated.
He further noted that this situation has significant implications for the functioning of all three tiers of government, as NNPCL has been unable to contribute its expected payments into the Federation Account.
“There are no easy choices here. We must find a solution to keep NNPCL solvent, ensure government operations continue, and maintain petrol availability at the pumps,” he added.
Onanuga pointed out that the completion of the Dangote Refinery and other local refineries could be the game-changer, providing a more stable fuel supply to the domestic market. Once operational, these refineries, including the government-owned Port Harcourt Refinery, are expected to benefit the economy, create well-paying jobs, and reduce the demand for foreign exchange needed to import petroleum products.
Earlier, NNPCL raised petrol prices to N855 per litre, even though the landing cost of Premium Motor Spirit (PMS) was estimated at around N1,200 per litre.
