• News
  • Business
  • Opportunities
  • Articles & Resources
  • Spotlight
  • Views
    • Interviews
    • Opinions
  • MSME Jobs
  • More
    • Africa
    • World
  • webmail
  • Terms of Use
MSME Africa
  • News
  • Business
  • Opportunities
  • Articles & Resources
  • Spotlight
  • Views
    • Interviews
    • Opinions
  • MSME Jobs
  • More
    • Africa
    • World
  • webmail
  • Terms of Use
No Result
View All Result
  • News
  • Business
  • Opportunities
  • Articles & Resources
  • Spotlight
  • Views
    • Interviews
    • Opinions
  • MSME Jobs
  • More
    • Africa
    • World
  • webmail
  • Terms of Use
No Result
View All Result
MSME Africa
No Result
View All Result

Fuel Subsidy Removal: NNPC Offsets $4.68bn Cash Call Debt To IOCs

Olusola Blessing by Olusola Blessing
November 12, 2024
in Business, News
0
Fuel Subsidy Removal: NNPC Offsets $4.68bn Cash Call Debt To IOCs
Share

The Nigerian National Petroleum Company Ltd (NNPCL) has officially cleared its outstanding $4.68 billion cash call debt to five international oil companies (IOCs) operating in Nigeria. This marks a significant achievement for the company, which is now debt-free, following the full removal of the petrol subsidy. 

 

Mele Kyari, the group CEO of NNPCL, made the announcement during the 42nd NAPE Annual International Conference & Exhibition in Lagos. He credited the removal of the petrol subsidy, a decision by President Bola Tinubu, as a pivotal step in restoring Nigeria’s economic health. Although challenging at first, Kyari explained that ending the subsidy was necessary to stop the harmful practice of fuel subsidies that had drained the national economy. 

 

Kyari likened the subsidy to a damaging habit, saying, “President Tinubu has effectively stopped Nigeria from ‘smoking cigarettes,’ restoring the nation’s economic health.” He acknowledged that while the subsidy removal would lead to short-term financial strain, it would ultimately encourage more prudent energy use. He also noted that higher fuel prices would push Nigerians to reconsider their spending habits, especially with regard to private transport, leading to a potential revival of public transportation.

 

With the subsidy burden lifted, NNPCL can now focus on its core upstream oil sector activities. This shift will enable the company to meet its obligations to joint venture partners, which had been strained by its past cash call defaults. Kyari confirmed, “We no longer owe any of our partners,” emphasizing that the financial stability gained through subsidy removal would allow NNPCL to drive sustainable energy production for the benefit of Nigerians.

 

Over the years, NNPCL had accumulated significant unpaid cash call obligations to its joint venture partners, including Mobil, Chevron, Shell, TotalEnergies, and Agip. These unpaid debts severely impacted Nigeria’s upstream oil and gas sector, leading to operational strain, stalling growth, and undermining investor confidence. By 2016, the debt had become critical, prompting the government to create a $5.1 billion debt repayment plan. The amount was later reduced to $4.68 billion by December of that year.

Despite ongoing financial constraints, NNPCL’s clearing of this debt marks a turning point. Kyari expressed optimism, stating, “In three to four years, I believe we will see transformations in the sector that didn’t happen over the past 40 years.”

This development signals a positive shift for Nigeria’s oil sector, with NNPCL now positioned to reinvest resources, expand gas infrastructure, and improve the national grid, all of which will contribute to the country’s long-term energy sustainability.

Post Views: 127
Share

Related Posts:

  • Best Cities to live as an Entrepreneur in Nigeria
    Ultimate 2024 Guide to the Top Business Enabling…
  • images (51)
    Naira-for-crude: Petrol Price Hike Looms As talks…
  • NNPC Plans to Borrow $2 Billion Crude Oil-Backed Loan to Boost Financial Inflows
    NNPC Plans to Borrow $2 Billion Crude Oil-Backed…
  • NNPC and Chevron Complete Conversion of Joint Venture Assets, Target 165,000 Barrels of Oil Per Day by 2024
    NNPC and Chevron Complete Conversion of Joint…
  • NNPC’s dividends to FG drops from $11.9 billion to $1.83 billion as PIA Takes Effect
    NNPC’s dividends to FG drops from $11.9 billion to…
  • MSME Africa Unveils Top 50 Remarkable MSME Founders 2023, Awards them $25,000 in Media Credits
    MSME Africa Unveils Top 50 Remarkable MSME Founders…
Tags: IOCNNPCNNPCL
Previous Post

LCCI President Calls for Stronger Nigeria-Taiwan-Africa Business Partnerships

Next Post

IPMAN Reaches Agreement with Dangote Refinery To Lift Petrol, other Products Directly

Next Post
IPMAN Reaches Agreement with Dangote Refinery To Lift Petrol, other Products Directly

IPMAN Reaches Agreement with Dangote Refinery To Lift Petrol, other Products Directly

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result
Join MSME on Whatsapp
Subscribe To Our Newsletter
Enter your email to receive a weekly round-up of our best posts. Learn more!
icon
By subscribing, you agree with our privacy policy and our terms of service.

Recent Posts

  • SMEDAN Licenses Business Deployment Service Providers to Boost MSMEs Across Nigeria
  • New Climate-Smart Initiative to Empower 25,000 Farmers in Nigeria’s Grain Sector
  • NECA, Stakeholders Push for Enabling Environment and Rights-Based Support to Strengthen MSMEs
  • TeKnowledge Launches AI-First Services and Cybersecurity Solutions to Drive Nigeria’s Digital Transformation
  • CBN Warns Nigerians Against Rising Wave of Fraudulent Financial Offers

Recent Comments

  • 10 Reasons Why SMEs Should Invest in Video Marketing - MSME Africa on How to Create Viral Videos for Social Media in 2024
  • link alay4d on 5 Nigerian-based Companies Providing Accelerator Programs for Startups in 2024
  • Damilare Oladeji on Nigerian Government Agencies that Support Entrepreneurship in 2024
  • situs alay4d on 50 Best Tools to Boost Your Productivity as an Entrepreneur in 2024
  • Otabor Osayomore Blessing on Ultimate 2024 Guide to the Top Business Enabling Cities for Startup Founders and Entrepreneurs in Nigeria
  • About us
  • Advertise with us
  • Contact Us
  • Home
  • News
  • Newsletter
  • Submit News
  • Terms of Use

© 2023 MSME Africa - All rights reserved.

No Result
View All Result
  • About us
  • Advertise with us
  • Contact Us
  • Home
  • News
  • Newsletter
  • Submit News
  • Terms of Use

© 2023 MSME Africa - All rights reserved.