Inter-company debts owed to the Nigerian National Petroleum Company Limited (NNPCL) by its subsidiaries and related entities ballooned 70.4 per cent to N30.30 trillion in 2024.
The increase of N12.52 trillion from N17.78 trillion in 2023 was revealed in NNPC’s audited financial statements released in late 2025.
Only eight of the company’s 32 subsidiaries remain debt-free, with refineries, trading arms, and gas infrastructure units driving the surge.
Port Harcourt Refining Company Limited led with N4.22 trillion owed, up from N2.00 trillion.
Kaduna Refining and Petrochemical Company Limited followed with N2.39 trillion, while Warri Refining and Petrochemical Company Limited recorded N2.06 trillion.
NNPC Trading SA posted the largest single obligation at N19.15 trillion, more than doubling from N8.57 trillion.
Other significant debtors include NNPC Gas Infrastructure Company Limited (N847.98 billion), Petroleum Products Marketing Company Limited (N264.75 billion), and Gwagwalada Power Limited (N326.58 billion).
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NNPC’s liabilities to subsidiaries rose 44.7 per cent to N20.51 trillion, primarily to NNPC Trading Limited (N16.36 trillion).
External borrowings doubled to N122.8 billion to fund projects like the Gwagwalada Independent Power Plant.
Despite reporting N5.4 trillion profit after tax on N45.1 trillion revenue, experts warn the debt signals structural weaknesses.
Prof Wumi Iledare described the 70 per cent jump as a governance test, urging strict settlement timelines, subsidiary restructuring, and CEO accountability.
Jeremiah Olatide of Petroleumprice.ng called it financial recklessness, stressing debt management, audits, and transparent reporting.
The surge complicates NNPC’s commercial transformation under the Petroleum Industry Act, asset divestment plans, and liquidity management.
Recent federal debt cancellation of $1.42 billion and N5.57 trillion provided relief, but internal obligations threaten sustainability.
Analysts emphasise resolving inter-company balances to reassure investors and support global competitiveness.
This development highlights ongoing challenges in balance-sheet management and commercial discipline within Nigeria’s national oil company group.
