Victor Ezeja
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed that the challenge of Forex illiquidity was the reason behind the decline in the number of approved importers bringing petrol cargoes into the country.
This, according to the Regulatory Authority, has made most oil marketing companies granted licence unable to import the commodity.
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Chief Executive of the NMDPRA, Farouk Ahmed, who made this known on Monday during the opening session of the Oil Trading and Logistics (OTL) Africa Week 2023 in Lagos, however, expressed optimism that private oil marketing businesses, in addition to the state-owned oil corporations, will be able to import petrol, with the federal government’s efforts to restore stability of the harmonized forex market.
According to him, between June and September 2023, eight cargoes of PMS totaling 251,000 MT (291,238,670.69 liters) were provided by eight wholesale petroleum product providers out of 94 licensed oil marketers who were given import licenses.
“Supply of petroleum products is expected to be further enhanced and secured by the coming onstream of Dangote Refinery and the rehabilitation of Nigerian National Petroleum Company (NNPC) Limited refineries in the short to medium term.”
According to the head of NMDPRA, the Nigerian government is working to ensure that the nation’s overall national energy security is managed in a way that optimizes position within the complex global energy dynamics.
He noted that two key pillars for pursuing an organized energy transition in Nigeria are the acceptance of gas as a transition fuel and the establishment of strategic frameworks for gas development under the Decade of Gas Program (DOGP).
“The DOGP will ensure the accelerated growth of gas processing, storage, transportation, retail, and utilisation in Nigeria within the decade. The program has optimal industry inclusiveness and is making steady progress in the implementation of all its strategic objectives, initiatives, and projects,” Ahmed stated.
He further emphasized that full deregulation of the industry has improved the ability to use CNG, which he said has been launched by President Bola Tinubu, as a more economical and environmentally friendly alternative fuel for automobiles.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
