Nigeria's debt to gasoline suppliers has surpassed $6 billion - doubling since early April - as state oil firm NNPC struggles to cover the gap between fixed pump prices and international fuel costs, six industry sources said.

Nigerian President Bola Tinubu announced an end to expensive fuel subsidies last year, allowing pump prices to triple. But state oil company NNPC capped pump prices shortly afterward as citizens chafed under rising cost of living.

NNPC began struggling early this year when late gasoline payments surpassed $3 billion.

The company has still not paid for some January imports, traders said, and the late payments amount to $4 billion to $5 billion. Under contract terms, NNPC is meant to pay within 90 days of delivery. NNPC declined to comment.

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

WeddingParol:
Who are the suppliers?

The same cabal incharge of fuel subsidy from time immemorial.


They will always sort things out at the detriment of our collective resources.

Truth be told, Tinubu's policies were hurriedly pronounced and poorly implemented.

Faiththatworks:
This is terrible news for Nigeria. It simply means we can't meet up with our financial obligations to our international partners, meaning expect fuel scarcity very soon.
However,any right thinking Nigerian will think this report will motivate NNPCL to quickly work on the Refineries or in the short run, mandate Oil companies to supply Dangote Refinery all the crude it needs to supply all our needs as a nation but the reverse will be the case.
Asiwaju must mandate an end to Importation of Refined products the day Dangote pumps put its first liter of petrol.
He should also conduct an audit of Petrol Importation in the last 10 years,the figures I see this morning is alarming,how can Nigeria owe 6 billion dollars on petrol subsidy when our total budget for 2024 is around 23 billion dollars, enough of the madness going on in that cesspit of Corruption called NNPCL.
God bless Nigeria.

EmeeNaka:
E dey patch, e dey leak

4Play:
https://www.reuters.com/business/energy/nigerias-gasoline-debt-hits-6-billion-some-traders-back-out-say-sources-2024-07-04/

WeddingParol:
Who are the suppliers?

The same cabal incharge of fuel subsidy from time immemorial.

They will always sort things out at the detriment of our collective resources.

Truth be told, Tinubu's policies were hurriedly pronounced and poorly implemented.

StreetFight:


You are right, but we will keep patching till we seal the leakage

maasoap:
When Buhari was selling N200 per litre, how much was the subsidy on a litre? Now, most filling stations are selling N700 per litre, how much is Tinubu adding to a litre in form of subsidy? The more you look, the less you see.

Omooba77:
…says Nigeria experienced economic development during Jonathan’s administration

A former Governor of Ekiti State, Dr. Kayode Fayemi, on Tuesday, said the protest that trailed the fuel subsidy removal during the administration of President Goodluck Jonathan in 2012 was due to political interests.

Fayemi said this in his keynote address delivered at a national dialogue organised to celebrate the 60th birthday celebration of the founding National Secretary of Alliance for Democracy and Fellow, Abuja School of Social and Political Thought, Professor Udenta Udenta in Abuja.

The programme was attended by Jonathan, former Minister of Education, Dr. Oby Ezekwesili; former Minister of Aviation, Osita Chidoka, among others.

The PUNCH reports that on January 1, 2012, President Goodluck announced the removal of fuel subsidy and adjusted the pump price of petrol from N65 per litre to N141.

The decision sparked mass protests, tagged ‘Occupy Nigeria’ across major cities of the country.

The price was later re-adjusted to N97, after more than a week of protests.

Petrol price was later reduced to N87 in 2015.

Jonathan faced serious backlash for the fuel price adjustment, especially from leaders of the All Progressives Congress, who were then in different opposition parties, including the defunct Action Congress of Nigeria, Congress for Progressives Congress, All Nigeria Peoples Party, and All Progressive Grand Alliance.

While condemning what he described as the “winners take all” style of Nigeria’s democracy, Fayemi said the challenges facing the nation today cannot be solved unless the country embraced proportional representation, where the spoils of elections are shared between contestants.

According to him, the last time Nigeria experienced economic development was during Jonathan’s administration

Fayemi said, “Today, I read former President Olusegun Obasanjo’s interview in The Cable saying our liberal democracy is not working and we need to revisit it, and I agree with him. We must move from the political alternatives. I think we are almost on a dead end of that.

“What we need is alternative politics and my own notion of alternative politics is that you can’t have 35 per cent of the vote and take 100 per cent. It won’t work! We must look at proportional representation so that the party that is said to have won 21 per cent of the votes will have 21 per cent of the government. Adversary politics bring division and enmity.

“All political parties in the country agreed and they even put in their manifesto that subsidy must be removed. [b]We all said subsidy must be removed. But we in ACN at the time, in 2012, we know the truth Sir, but it is all politics.

“That is why we must ensure that everybody is a crucial stakeholder by stopping all these. Let the manifesto of PDP, APC and Labour Party, be put on the table and select all those who will pilot the programme from all parties[/b].”

https://punchng.com/breaking-fuel-subsidy-we-played-politics-with-2012-occupy-nigeria-fayemi/

adebayo201:
What a country...

Sheuns:
Subsidy is gone in the mud.

It’s not that you give Nigerians these petrol for free. Why the hell do you owe the suppliers this much?