The Nigerian National Petroleum Company Limited’s transition to full commercial operations is facing renewed scrutiny as inter-company debts surged to N30.3 trillion, highlighting growing concerns over liquidity management and internal financial discipline.
According to its 2024 audited financial statements, debts owed by subsidiaries, joint ventures, and related entities rose by 70 per cent, or N12.52 trillion, from N17.78 trillion in 2023. The increase underscores structural challenges in how several units manage obligations to the parent company.
Out of NNPC’s 32 subsidiaries, only eight are debt-free. Refining companies remain major contributors, led by Port Harcourt Refining Company Limited with N4.22 trillion, up from N2 trillion. Kaduna Refining and Petrochemical Company Limited owes N2.39 trillion, while Warri Refining and Petrochemical Company Limited stands at N2.06 trillion. Despite repeated rehabilitation efforts, the refineries continue to operate below commercial viability, relying heavily on parent funding.
Trading operations account for the largest share of the debt, with NNPC Trading SA owing N19.15 trillion, more than double its 2023 figure of N8.57 trillion. Other notable balances include NNPC Gas Infrastructure Company Limited (N847.98 billion) and Nigerian Pipelines and Storage Company Limited (N466.74 billion).
NNPC’s own obligations to subsidiaries also increased by 44.7 per cent to N20.51 trillion, largely driven by NNPC Trading Limited, which accounted for N16.36 trillion of the total.
The debt profile reflects the complexities of NNPC’s restructuring under the Petroleum Industry Act. While recent federal approval cleared $1.42 billion and N5.57 trillion in legacy federation debts, analysts note that internal debt accumulation remains a pressing issue.
Group Chief Executive Officer Bashir Bayo Ojulari reported a strong 2024 performance, with profit after tax rising to N5.4 trillion on revenue of N45.1 trillion, representing increases of 64 per cent and 88 per cent respectively from 2023. However, experts argue that sustained profitability will depend on tighter cash-flow controls across the group.
Petroleum economist Prof. Wumi Iledare described the N30.3 trillion debt as a test of governance, calling for stricter settlement timelines, restructuring of underperforming subsidiaries, and clearer separation of legacy debts from new obligations.
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Similarly, Jeremiah Olatide of Petroleumprice.ng said the 70 per cent increase signals systemic weaknesses, urging stronger debt management, routine audits, and transparent reporting to prevent recurring financial strain.
NNPC also doubled its borrowings to N122.8 billion in 2024, largely to finance projects such as the Gwagwalada Independent Power Project.
Analysts say the rising debt burden presents both a challenge and an opportunity. With firm commercial discipline, accountability, and accelerated reforms, NNPC could convert internal financial pressures into a foundation for long-term sustainability and
