May 26, 2024

MOMAN members own licenses to import multiple petroleum products, robust infrastructure -Adeosun

Oredola Adeola


Mr. Olumide Adeosun, Chairman, Major Oil Marketers Association of Nigeria (MOMAN) has asserted the capability of his members to import Premium Motor Spirit (petrol) into Nigeria, noting that the importers possess importation licenses that are quarterly renewed, as well as robust logistics capacity that includes vessels, depots, trucks, and retail outlets to guarantee efficient product supply.


The MOMAN Chairman establishes this during a conversation with the media in Lagos, on the sideline of the full deregulation of the oil and gas downstream sub-sector and prevailing challenges post-subsidy removal.


Adeosun, who is also the Chief Executive Officer (CEO) and Executive Director of Ardova Plc, highlighted that the restriction on importing petroleum products into the country lies in the exclusive right granted to the NNPCL to import petrol.


He said, “The reality is that many of us have importation licenses that have never lapsed.


” We renew them on a quarterly basis via the NMDPRA portal. Some of us are also importing diesel, so we need these licenses.


“The licenses cover multiple products such as ATK, PMS, and AGO. The regulator used to remind us that we need these licenses, even when we were receiving products from the Nigerian National Petroleum Company Limited (NNPCL), especially when it comes to transactions that take place on the high seas.”


He however noted that with the reduction of the monopoly on imports enjoyed by NNPCL, the private sector is now prepared to ensure efficient and sustainable product supply across the country, pending when the local refineries are fully operational in the country.


Adeosun also emphasized the importance of efficiency in the importation and delivery operations process to offset the shortcomings in forex rates.


He stated that efficiency has always been a priority, especially when aligning with the NNPCL operating regime.


Adeosun clarified that their ownership of vessels, depots, trucks, and retail outlets allows them to optimize efficiency.


The MOMAN Chairman also emphasized the significance of productivity in the country’s progress and urged the government to tackle various issues.


These include addressing insecurity, boosting productivity in the oil and gas sector, and controlling the rising costs of food and transportation.


Additionally, Adeosun commended the establishment of a committee on fiscal policy and tax reforms. However, he appealed to the government to reconsider the 7.5% VAT on diesel, as it would further burden Nigerians.


He suggested suspending VAT on diesel until the impact of the petrol price increase is overcome.


Furthermore, Adeosun called on the government to extend subsidies for transportation and address challenges such as insecurity, crude oil theft, and fuel and power subsidies.