₦airaland Forum

Long queues are snaking back at petrol stations across Africa’s biggest economy, raising fresh concerns about shortages as the Nigerian National Petroleum Company Ltd (NNPCL) struggles with a staggering $6 billion petrol payment backlog.

BusienssDay reports that NNPC owes around $6 billion to international traders for imported petrol as traders said the state-owned company is taking more days to make payment instead of within 90 days. It quoted Reuters as saying that NNPC’s mounting debt, which includes overdue payments exceeding $4 billion-$5 billion for January imports alone as several international petrol suppliers have ceased participating in recent tenders.

“The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,” one industry source told Reuters.

The payment delays underscore the creeping return of fuel subsidies – scrapped in May 2023 – that sap NNPC’s cash for imports and what it can send to President Bola Tinubu’s government.

At least two suppliers already stopped participating in recent tenders after hitting self-imposed debt exposure limits to Nigeria, the sources said, meaning they will not send more gasoline until they receive payments.

NNPC’s suppliers, including international traders like Vitol, Mercuria and Gunvor as well as Nigeria-based trading houses declined to be named because they are not authorised to speak to the media. The trading firms declined to comment.

BusinessDay’s findings showed traders thrive in risky environments, but they place limits on how much credit they allocate per trade to avoid too much exposure on one borrower. These limits vary by company based on their size and where they operate.

As a result, Nigeria’s tenders to buy petrol in June and July were smaller, traders told Reuters.

NNPC will import via tender about 850,000 tonnes in July, two of the sources said, down from the typical 1 million tonnes in previous months.

The above development means Nigerians are once again facing long queues and petrol scarcity across major cities, according to findings by BusinessDay.


Reports indicated that queues have reappeared in Lagos, Abuja, and other major cities across the country. Culled from Business Day

Source: https://dailytrust.com/Queues-Resurface-As-NNPC-Incurs-$6bn-Petrol-Payment-Backlogs

No benefit of the subsidy removal.

So many damages caused by the subsidy removal.

A = All

P = Promises

C = Cancelled

So, we can not pay for the petrol we been drinking but expect to be sold more to drink.

Guess our cars will go thirsty till we realise petrol is not like manna from heaven but something we must pay for.

NNPC is a cesspit of corruption.
If that company is ever audited, the stink will reach up to hight heavens

Tinubonomics is a disease honestly

Chai ..

This country is ex'd..

For all those "tribalist , liars, bribe takers , killers , riggers, touts , propagandist " who brought this mess on innocent Nigerians , may you and your children and generation never reap the fruit of your labour .

I need an amen please ..

The previous government really bankrupted this nation.

Na waoooo, subsidy is gone ... Omaseooo

Amoda Ogunlere Yekini aka Emilokan
Founder of Lagos and agbado economics.

Meanwhile

NNPC is shrouded in secrecy.
Until their accounts is made open to scrutiny, nothing will change!

...
Tinubu is not here to play.

He's misson is to finish Nigeria kpatakpata..

🤦🏽‍♀️

There was never a good news in Nigeria since the psychopath assumed the mantle of leadership. I don't know why I envy Niger republic

One step forward....50 steps backwards.
NIGERIA UNDER APC.

Tinubu should be in jail with Emefile.

Even with fuel subsidy gone and price of fuel at over ₦700

And the ebola plague continues...

Subsidy can not be stopped but reduced Nigeria a poor nation can’t pay for fluctuating price like other strong Economy

If subsidy is gone we should we buying Petrol at price of Diseal and gas

Black nation with huge population lolz

I have been saying it..

Mele Kyari should be in jail immediately after his tenure just like Godwin Emefiele. But then, when will his tenure end? Go and read the PIB well.

Nigeria will be not be doing justice to herself if Hadi Sirika, Mele Kyari, and Yakubu Mahmud are not jailed like Godwin Emefiele.

Yarimo's APC 😭😭

adenigga:
Source: https://dailytrust.com/Queues-Resurface-As-NNPC-Incurs-$6bn-Petrol-Payment-Backlogs

e no concern our coastal highway President.

,

Dangote refinery should start refining, we were told they will start This month

Patch-patch government

As a Nigerian please always have time to enjoy, even if it's sound sleep.

A swear, our problem no go ever finish.

hh

Are you the previous government? is it still not the same people

Rilwayne001:
The previous government really bankrupted this nation.

Balablu na naija nemesis

We're back to square one again