The announcement was made during an investor meeting in Washington, D.C., signalling a step toward stabilising the company’s financial position.
“Although the subsidy was removed on May 29, 2023, the company continued to face challenges, not in terms of petrol subsidy, but foreign exchange subsidy, which was borne elsewhere, mainly by NNPC,” he explained.
This burden exacerbated the company’s difficulties, particularly in maintaining supply obligations.
The Minister assured stakeholders that the NNPCL has outlined a structured plan to settle its debts.
“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. From what I understand, they have even commenced the process,” he confirmed.
The company has previously admitted to experiencing significant financial pressure, especially due to rising foreign exchange costs.
This latest development is expected to restore confidence among domestic and international investors, offering reassurance about NNPCL’s ability to navigate its financial commitments while maintaining supply stability.
