Despite its high-profile transition into a commercial entity under the Petroleum Industry Act, the Nigerian National Petroleum Company Limited (NNPC) is facing a liquidity nightmare. Newly released 2024 audited financial statements reveal that the company is grappling with a staggering ₦30.30 trillion in inter-company debt.
The findings, analyzed on Sunday, January 4, 2026, show that obligations owed to the parent company by its subsidiaries and joint ventures skyrocketed by 70.4% in just twelve months—jumping from ₦17.78 trillion in 2023 to ₦30.30 trillion at the close of 2024.
Of the NNPC’s 32 subsidiaries, a shocking 24 are currently in debt to the parent company. Leading the list of “financial sinkholes” are the nation’s refineries:
- Port Harcourt Refining Co: Owed ₦4.22 trillion (up from ₦2.00 trillion).
- Kaduna Refining & Petrochemical: Owed ₦2.39 trillion.
- Warri Refining & Petrochemical: Owed ₦2.06 trillion.
- NNPC Trading SA: Accounts for a massive ₦19.15 trillion of the total debt.
On the surface, the NNPC appears robust, with Group CEO Bashir Bayo Ojulari announcing a Profit After Tax of ₦5.4 trillion for 2024. However, experts warn that these headline numbers mask a deep-seated structural failure. The refineries, despite billions spent on “turnaround maintenance,” remain operationally dormant and financially dependent on the parent firm.
Petroleum economist Prof. Wumi Iledare described the ₦30.3 trillion figure as a massive red flag.
“The audited report exposes a deep structural problem,” Iledare noted. “Only eight out of 32 subsidiaries being debt-free tells us this is not bad luck; it is weak commercial discipline. Profitable units end up subsidizing weak ones, and cash that should go into growth is tied down.”
“The audited report exposes a deep structural problem,” Iledare noted. “Only eight out of 32 subsidiaries being debt-free tells us this is not bad luck; it is weak commercial discipline. Profitable units end up subsidizing weak ones, and cash that should go into growth is tied down.”
The ballooning debt comes as the federal government attempts to clean up the NNPC’s balance sheet. President Bola Tinubu recently approved the cancellation of approximately $1.42 billion and ₦5.57 trillion in debts owed by NNPC to the Federation Account.
To stay afloat and attract global investors, the NNPC has confirmed it is reviewing its portfolio to sell stakes in non-core assets, including pipelines and power plants. However, analysts warn that unless the company enforces strict settlement timelines and stops “owing itself,” its long-term sustainability remains in jeopardy.