Presidential Aide Reveals NNPCL’s Financial Strain Due to Inability to Subsidize Petrol
Thank you for reading this post, don't forget to subscribe!Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, announced on Tuesday that the Nigerian National Petroleum Company Limited (NNPCL) has admitted to financial constraints as it can no longer afford to subsidize petrol. Onanuga shared this update in a post on X, explaining that continuing to cover the gap between the landing cost and petrol price could lead the NNPCL to bankruptcy.
He clarified that the NNPC’s debt is a result of its efforts to absorb rising petrol costs and shield Nigerian consumers, rather than any governmental deception. Onanuga noted, “NNPC recently acknowledged it can no longer sustain the price differential on its balance sheet without risking insolvency.”
This financial strain has broader implications for the government’s functionality, as the NNPC has failed to make contributions to the Federation Account, which funds various government activities. Onanuga emphasized that there are no easy solutions and that measures must be taken to ensure the NNPC’s survival, maintain government operations, and keep petrol flowing.
Onanuga highlighted the potential positive impact of the Dangote Refinery and other local refineries. He noted that once these refineries, including the government-owned Port Harcourt Refinery, are fully operational, they could become major suppliers for the local market. This development could create numerous jobs and reduce the country’s reliance on foreign exchange for petroleum imports.
Earlier, the NNPCL raised the petrol price to ₦855 per litre, while the landing cost of Premium Motor Spirit (PMS) was around ₦1,200.
