- Petrol Importation Scam Must Be Investigated — Falana
Nigeria’s state-owned oil company, NNPCL, has acknowledged a significant debt to petrol suppliers, which threatens the country’s fuel supply sustainability. Reports suggest a $6 billion debt has exacerbated the petrol scarcity, a persistent issue since 2024. NNPCL previously attributed supply shortages to logistics challenges and flooding.
However, on Sunday, NNPCL spokesman Olufemi Soneye stated, “this financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply.” He added, “In line with the Petroleum Industry Act (PIA), NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security. We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.”
Nigeria faces energy challenges, with non-operational state-owned refineries and reliance on imported refined petroleum products. Fuel queues are common, and petrol prices have tripled since the subsidy removal in May 2023. The government’s forex window unification led to a significant naira devaluation, causing inflation and price increases.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) highlighted the challenges faced by marketers, citing high landing costs. IPMAN National Operations Controller, Zarama Mustapha, said, “Right now, the landing cost of PMS is over ₦1,200, without the margin of the marketers, transportation and other logistics… NNPC sells to marketers at ₦565 or so. That means there is a subsidy of almost ₦600 to ₦700 as of now… Whether they say there is subsidy or there is not subsidy, the fact on the ground clearly states that there is something they are under-recovering.”
Aliko Dangote’s newly operational refinery in Lagos aims to alleviate the fuel supply crisis, with plans to achieve full capacity by year-end. The refinery has begun supplying diesel and aviation fuel, with petrol supply expected soon.
Meanwhile, Human rights lawyer Femi Falana says the “importation scam” around petrol must be investigated.
“It is high time the importation scam was investigated,” he said on Channels Television’s Sunday Politics programme.
“I am not talking of the joke that is going on in the National Assembly. The media must help, civil society organisations must help to expose the fraud.”
Falana threatened to sue those responsible for the fixing of state-owned refineries should they announce another postponement.
