The Nigerian National Petroleum Company Limited (NNPC) is facing rising financial pressure as debts owed to it by subsidiaries and related entities jumped by more than 70 per cent to N30.30tn in 2024, according to its latest audited financial statements.
The accounts show that inter-company receivables increased by N12.52tn, from N17.78tn in 2023 to N30.30tn as of December 31, 2024, raising concerns about liquidity management and long-term financial sustainability despite the company’s transition into a commercial entity.
An analysis of the audited report indicates that most of the debts are owed by NNPC’s core operating subsidiaries, including refineries, trading units and gas infrastructure companies. Of the company’s 32 subsidiaries, only eight were debt-free in 2024.
The Port Harcourt Refining Company Limited topped the list, owing N4.22tn, up from N2.00tn in 2023. Kaduna Refining and Petrochemical Company Limited followed with N2.39tn, while Warri Refining and Petrochemical Company Limited owed N2.06tn, both recording sharp year-on-year increases.
NNPC Trading SA accounted for the largest single exposure, with its debt more than doubling to N19.15tn in 2024 from N8.57tn the previous year. Other subsidiaries and affiliates with significant outstanding balances include NNPC Gas Infrastructure Company Limited, Nigerian Pipelines and Storage Company Limited, Gwagwalada Power Limited, Petroleum Products Marketing Company Limited and NNPC Shipping and Logistics Limited.
The rising inter-company debt comes even as NNPC reported strong financial performance in 2024. The Group Chief Executive Officer, Bashir Bayo Ojulari, said the company recorded a profit after tax of N5.4tn on revenue of N45.1tn, representing increases of 64 per cent and 88 per cent respectively over 2023.
However, analysts warn that the ballooning internal debts highlight structural and governance challenges. Petroleum economist Prof. Wumi Iledare said the scale of the increase points to weak commercial discipline among subsidiaries, noting that 24 out of 32 units remain indebted to the parent company.
“The N30.3tn inter-company debt is not just an accounting issue; it is a governance test,” Iledare said, urging NNPC to enforce strict settlement timelines, restructure non-viable subsidiaries and strengthen accountability.
NNPC’s obligations to its subsidiaries also rose sharply, increasing by 44.7 per cent to N20.51tn in 2024 from N14.17tn in 2023, with NNPC Trading Limited accounting for N16.36tn of the amount.
Meanwhile, the company’s borrowings more than doubled to N122.8bn in 2024 from N55.7bn a year earlier, largely due to new loan facilities and accrued interest tied to projects such as the Gwagwalada Independent Power Project.
The debt surge comes as NNPC continues efforts to divest non-core assets, improve liquidity and reposition itself as a commercially viable national oil company under the Petroleum Industry Act. Analysts say resolving inter-company debts will be critical to sustaining profitability and attracting external investment.
