Wale Edun, the Minister of Finance and coordinating minister for the economy, announced that the Nigerian National Petroleum Company (NNPC) Limited is set to begin settling its $6 billion debt to suppliers.
This announcement was made during a meeting with investors in Washington, DC, on Wednesday.
Edun addressed concerns about the financial obligations of NNPC, noting that while the government removed petrol subsidies on May 29, 2023, issues related to foreign exchange subsidies still impacted the company.
“Although the subsidy was no longer on the balance sheet of the government, it did rear its head in terms of foreign exchange subsidy, mainly borne by NNPC,” he explained.
The Minister emphasized that NNPC is now positioned to address its payables, stating, “They have a route to paying down their payables and I’m sure that in no time at all, they will start. From what I understand, they have even commenced the process of paying down their payables.”
This announcement marks a critical step in addressing the financial challenges faced by NNPC, which has been under pressure due to its substantial debts. The resolution of this debt is expected to enhance the company’s operations and improve its relationships with suppliers, ultimately contributing to a more stable fuel supply in the country.
Investors expressed cautious optimism about the news, viewing it as a positive sign for Nigeria’s economic recovery and the potential for increased investment in the oil and gas sector. The resolution of NNPC’s debt is anticipated to provide a more favorable business environment and strengthen the company’s financial standing.
As Nigeria navigates its economic challenges, the government’s efforts to stabilize key sectors, including energy, are seen as vital for fostering growth and ensuring sustainable development.
