Despite its transition into a commercial entity, the Nigerian National Petroleum Company Limited (NNPCL) is facing mounting financial strain as debts owed by its subsidiaries surged to ₦30.30 trillion in 2024, up 70.4% from ₦17.78tn in 2023, according to its latest audited financial statements.
The sharp rise is largely driven by underperforming subsidiaries, particularly the nation’s refineries and trading arms. Only eight out of NNPC’s 32 subsidiaries are debt-free, highlighting weak commercial discipline within the group.
Top debtors include NNPC Trading SA (₦19.15tn) and the three government-owned refineries—Port Harcourt (₦4.22tn), Kaduna (₦2.39tn) and Warri (₦2.06tn)—which remain financially dependent on the parent company despite years of rehabilitation efforts.
Although NNPC reported a strong ₦5.4tn profit after tax on ₦45.1tn revenue in 2024, analysts warn that ballooning inter-company receivables threaten liquidity, investment capacity, and long-term sustainability.
Energy experts argue that the issue reflects structural and governance weaknesses, not insolvency. They urge NNPC to enforce strict settlement timelines, restructure or merge unviable subsidiaries, and end the recycling of internal debts.
Meanwhile, NNPC’s own borrowings more than doubled to ₦122.8bn in 2024, mainly to fund strategic projects like the Gwagwalada Independent Power Plant.
Analysts say resolving inter-company debts will be critical if NNPC is to attract investors, successfully divest non-core assets, and truly operate as a profitable, PIA-compliant national oil company.
