Nigerian Company Ends NNPC's Monopoly, Imports 27 Million Litres of Petrol, 5 Banks Involved
- A Nigerian company has become the first independent marketer to import petrol into the country successfully
- Over the years, the Nigerian National Petroleum Company Limited (NNPCL) has been the sole importer of petroleum products
- Since the end of the subsidy regime, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has started issuing licenses to oil marketing companies
The long-standing monopoly held by the Nigerian National Petroleum Company Limited (NNPC) as the sole importer of petroleum products into Nigeria has been broken by Emadeb Energy Services Limited.
On Wednesday, July 19, 2023, the Nigerian company received its shipment of 27 million litres of petrol which has been on sea for some time now.
Source: Getty Images
Significance of the deal
While the new shipment means improvements in the country's fuel supply chain, the massive cost of importing the product means that Nigerians will continue to pay above N600 per litre.
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At the time of importation, a barrel of crude oil is sold at $80, and naira has depreciated significantly against the US dollar.
Punch reports that Adebowale Olujimi, the Chief Executive Officer of Emadeb Energy, and its five bank partners paid over $17m (about N13 billion) to hire just the vessel called ST Nnene that move the product from Togo, where the shipment landed to Nigeria.
The five banks involved in the vast deal include:
- Polaris
- First Bank
- Union Bank
- Access Bank
- Fidelity bank
Emadeb Energy speaks
Olujimi, who was on hand to receive the vessel, ST Nnene, when it was birthed at Emadeb Jetty in Ijegun-Egba, said petrol importation was no longer sustainable.
According to him, the federal government must find a way to revive Nigerian refineries.
His words:
“Petrol importation is not a sustainable way for a country to run. From what we saw yesterday when PMS price rose to over N600 per litre, it is an indication that the dynamics of the business is a tough one.
"It requires huge US dollars to bring in this. The way forward is for local refineries to be revived."
Petrol prices to come down as marketers begin importation says FG
Meanwhile, Legit.ng had earlier reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that oil marketers had started the importation of petrol into Nigeria.
Before now, the Nigerian National Petroleum Corporation (NNPC) imported most of the petrol consumed in Nigeria.
But Faroul Ahmed, the chief executive officer of NMDPRA, said out of the 56 oil marketing firms that applied for licenses, 10 had shown commitment, while three imported fuel into Nigeria.
Source: Legit.ng
