Nigeria has recently received the first batch of imported petroleum products from three petroleum product marketers, namely Prudent, Emadeb, and A.Y Shafa, out of 10 petroleum product marketers given licenses to import some products, as other marketers are still expecting cargo arrivals between July and September, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed.
Engr. Farouk Ahmed, Authority Chief Executive, made this known in a meeting with oil marketing companies in Lagos State on Monday.
According to him, ten oil marketers have obtained permits to import petrol. He emphasised that the private investment is fundamental to the importation of petrol with the specific aims of meeting the country’s energy demands.
EnergyDay can confirm that this is a significant development in Nigeria, as the Nigerian National Petroleum Company (NNPC) Limited will by the effective take off of a fully deregulated downstream subsector reduced its petroleum product import volume to around 30 percent, thereby giving room for other players in the industry to participate competitively.
The NNPC has been relying heavily on swapping its crude for products such as petrol as its refineries struggle to run. The removal of subsidy has broken down the long-time monopoly of the NNPC and allow private companies to import petrol, which will reduce the burden on government finances.
The volume of litres of petrol daily consumed by Nigeria, was an average of 68 million liters of petrol per day, based on records obtained from the NNPCL until May, 2023, when it stopped being solely importation of petroleum products.
However, there have been controversies surrounding this figure, with different government agencies and officials providing contradictory figures.