Read: Sinosure reportedly blacklists Nigeria due to Naira instability

According to Ibe Kachikwu, the debts is a result of mismanagement in the oil sector. He further stated that the government will pay its debt, using funds from the multi-year $1.2 billion contract signed with Chevron in September 2015.

“The goal is to ensure that at the latest in 2017, the debt counter is zero,” he has said.

The NNPC have reportedly not been able to pay its dues since 2012.