By Adewale Sanyaolu
No fewer 86 oil trading companies may have dumped their various permits to import Premium Motor Spirit(PMS), popularly called petrol over the country’s worsening foreign exchange crisis.
The development may worsen the recent fuel shortages leading to queues across the country, especially in Lagos and Abuja.
Authority Chief Executive, Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, disclosed this in his keynote speech at Oil Trading Logistics(OTL) Africa Week 2023 which began in Lagos, yesterday with the theme ‘’Energy,Synergy and New Beginnings’’.
Ahmed said out of the Ninety-Four (94) wholesale suppliers that were issued permits to import PMS into the country, only eight suppliers delivered 8 cargoes of PMS totaling 251,000 MT within the period June – September 2023.
According to him, the low import performance was due to the challenge of forex illiquidity which has constrained the oil marketing companies’ ability to import the product.
‘‘But we are hopeful that the necessary efforts being taken by government to improve the stability of harmonized forex market will support the importation of PMS by more oil marketing companies alongside NNPCL,’’.
He assured that NMDPRA will continue to play its roles of ensuring energy security for the country, through the issuance of relevant regulatory approvals and guidelines.
Ahmed added further that the supply of Petroleum products is expected to be further enhanced and secured by the coming onstream of Dangote Refinery and the rehabilitation of NNPCL refineries in the short to medium term.
The Authority, he said, has also developed a framework for operationalising the National Strategic Stock (NSS) as required by the PIA.
When fully operational, he xplained that The NSS will guarantee availability of petroleum products nationwide and help in stabilising market prizes, especially during supply chain disruptions.
On energy security and market competition, the NMDPRA boss noted that within the space of the deregulated industry, it becomes imperative to pay more attention to energy security which comprises of sufficient volumes, strategic storages, efficient distribution systems and affordable prices.
According to him, data reveal that after the announcement of deregulation, an average volume of 44.3 million liters per day was evacuated for distribution nationwide which implies a 33.58 per cent reduction from the 66.7 million liters per day before the deregulation.
Ahmed disclosed that the supply of PMS and other Petroleum products have all maintained average land sufficiency levels above required thresholds.
Our market intelligence regulatory role shall continue to be strengthened to ensure that all provisions of the PIA with respect to establishment of strong competitive environment are fully implemented,’’.
Earlier in his address, Permanent Secretary Ministry of Petroleum Resources, Mr.Gabriel Aduda, said in this dynamic era, where the energy landscape is evolving rapidly, it’s crucial that we embrace the spirit of synergy.
“Our industry is no longer confined to traditional boundaries; it is about collaboration, innovation, and adaptability. The challenges we face are not unique to any single entity, but shared by all. Together, we can overcome them and pave the way for a brighter, more sustainable future,”
According to him, the energy sector is witnessing a renaissance of sorts, heralding new beginnings.
“As we move towards a more sustainable, eco-friendly future, our industry must lead the charge. We are not merely oil and gas experts; we are custodians of change. It is our responsibility to shape a future where energy is clean, accessible, and equitable for all.
Nigeria, as a significant player in the global energy landscape, faces the challenge of balancing its hydrocarbon-based economy with the need to transition towards cleaner and more sustainable energy sources.
While much attention has been focused on the upstream sector (exploration and production) in discussions about energy transition, the downstream sector, which involves refining, distribution, and marketing of petroleum products, plays a crucial role in this transition,’’.