Nigeria’s Declining Oil Output Forces Deferred Gasoline Payments
- NNPC delays crude payment under swap deals with local traders
- CEO Kyari expects recovery in crude output to ease obligations
Nigerian National Petroleum Chief Executive Mele Kyari.
Photographer: NurPhoto/Getty Images
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Nigeria’s dwindling crude output has forced its state-owned energy company to defer payments to some local gasoline suppliers by at least three months.
Nigerian National Petroleum Co. imports all the nation’s gasoline for road transport, swapping most for crude with international traders including Vitol Group and TotalEnergies SE and domestic groups such as Sahara Group Ltd. and Oando Plc. As the nation’s oil production slumped to multi-decade low of less than 1.2 million barrels a day, NNPC has asked local importers to permit payment delays of at least 90 days, according to Chief Executive Mele Kyari.