The Nigerian National Petroleum Company Limited is grappling with financial pressure as unviable and underperforming subsidiaries deepen inter-company indebtedness, pushing outstanding obligations owed to the company to N30.30tn.
This was revealed in an analysis of the audited accounts, recently released by the oil firm, conducted on Sunday,
According to reports, several of the national oil company’s core operating subsidiaries accounted for the bulk of the ballooning intercompany receivables.
It showed that while the national oil company operated 32 subsidiaries, only eight were not indebted to the parent company, leaving the majority burdened with varying levels of inter-company debt,
The increase in inter-company indebtedness has raised fresh concerns about the company’s liquidity management and long-term financial sustainability.
This development comes as NNPC continues to navigate concerns surrounding the write-off of substantial debts owed to the Federation, and advances plans to divest non-core assets as part of its ongoing transformation into a profitable, commercially oriented national oil company.
Edited by Favour Owonibi.