- Finance Minister Wale Edun announced that the Nigerian National Petroleum Company (NNPC) will start settling its $6 billion debt to suppliers
- The resolution comes after the removal of petrol subsidies on May 29, 2023, although foreign exchange subsidies have continued to impact NNPC
- Investors view this move as a positive sign for Nigeria's economic recovery and a potential boost for investment in the oil and gas sector
Wale Edun, the Minister of Finance and Coordinating Minister of 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, October 23.
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 emphasised 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 is expected to address the financial challenges faced by NNPC, which has been under pressure due to its substantial debts.
Nigeria aims for 18,000 CNG conversions by year-end to push shift from petrol, diesel
Meanwhile, TheRadar earlier reported that the Federal Government distributed 1,200 CNG conversion kits to five states in Nigeria, to achieve 18,000 conversions by year-end.
Over 130 conversion centres were reportedly operational with plans to expand to 250 by year-end.
