The subsidiaries of the Nigerian National Petroleum Company Limited recorded a sharp rise in inter-company debts in 2024, with total obligations climbing to ₦30.30 trillion, according to the company’s audited financial statements.
The figure represents a 70.4 per cent increase from the ₦17.78 trillion recorded in 2023, raising fresh concerns among industry stakeholders about liquidity pressures and internal financial discipline within the national oil company following its transition into a limited liability entity under the Petroleum Industry Act (PIA).
Data from the financial report show that refineries, trading arms, and gas infrastructure subsidiaries account for the bulk of the outstanding debts. Only eight of NNPC’s subsidiaries were reported to be debt-free, leaving the majority reliant on financial support from the parent company.
Among the refineries, the Port Harcourt Refining Company Limited posted the highest inter-company debt at ₦4.22 trillion, up from ₦2.00 trillion in the previous year, reflecting prolonged operational shutdowns and rehabilitation expenses. The Kaduna Refining and Petrochemical Company Limited followed with ₦2.39 trillion, while the Warri Refining and Petrochemical Company Limited recorded ₦2.06 trillion, both rising sharply from their 2023 positions.
NNPC’s trading operations also saw a significant jump in liabilities, with NNPC Trading SA owing ₦19.15 trillion, more than double the amount recorded a year earlier. Other subsidiaries with notable outstanding balances include gas infrastructure units, pipeline and storage companies, power plants, shipping services, and medical and engineering subsidiaries.
In total, the surge from ₦17.78 trillion in 2023 to ₦30.30 trillion in 2024 underscores growing internal liquidity strain within the NNPC group structure, despite ongoing reforms aimed at improving efficiency and profitability.
The report also revealed that NNPC’s obligations to its subsidiaries and related entities rose to ₦20.51 trillion in 2024 from ₦14.17 trillion in 2023. The largest share of this amount was owed to NNPC Trading Limited, which alone accounted for ₦16.36 trillion as of December 2024.
Despite the swelling debts, NNPC reported a profit after tax of ₦5.4 trillion in 2024, indicating that the company remains profitable overall. However, analysts warn that persistent internal debt accumulation could weaken cash flow, delay investments, and undermine long-term financial stability if not properly addressed.
Some energy experts have described the situation as a governance and structural challenge rather than outright insolvency. They note that most of the debts arise from subsidiaries continuing operations without settling payments for crude oil, petroleum products, or shared services.
The development comes amid broader fiscal adjustments, including the Federal Government’s decision to cancel portions of NNPC’s legacy obligations to the Federation Account following reconciliation. The move wiped off about $1.42 billion and ₦5.57 trillion in historical debts, easing short-term pressure on the company.
NNPC has said it is reviewing its asset portfolio and considering divestments in refineries, pipelines, power plants, and other non-core assets as part of efforts to improve liquidity, reduce debt exposure, and attract external investment.
Analysts stress that sustaining the company’s commercial transformation will require stricter enforcement of internal settlement rules, restructuring or merging underperforming subsidiaries, and clearly separating legacy debts from post-PIA obligations. They also note that oversight remains crucial, as NNPC continues to operate under the supervision of the Federal Government led by President Bola Tinubu.
