"We Have Access to FX": NNPC Becomes Sole Importer of Petrol as Forex Shortage Forces Out Marketers
- NNPCL said it has again become the only importer of petrol to Nigeria
- This is coming four months after imports were opened to private companies
- The Corporation said most of the marketers are having difficulty obtaining FX
Four months after imports were opened to private companies, Nigeria's national oil corporation NNPC Ltd announced on Monday, 10th October, that it has once again become the only importer of petrol.
This, it said, was due to the inability of licenced local private firms to get foreign currency.
Nigeria, Africa's greatest oil exporter, imports almost all of its fuel since it does not refine nearly enough to meet the demand of its over 200 million residents.
Reuters reports that the nation has been cutting off its supply of US currency in recent years by switching crude for fuel.
Legit.ng earlier reported that Afrexim Bank is reportedly looking to find buyers for Nigeria’s crude oil as it seeks to consummate its $3 billion swap deal with the Nigerian National Petroleum Company Limited (NNPC).
Source: UGC
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Petrol imports opened to the private sector
Notably, President Bola Tinubu implemented changes to wean the nation off of long-standing fuel subsidies, including opening up petrol imports to the private sector.
While some Petroleum firms started importing in July, Mele Kyari stated at an energy conference that they are currently having difficulty obtaining foreign currencies to import premium motor spirit (PMS), which is a type of petrol.
He stated:
Ware the only company importing PMS into the country.
None of them (fuel companies) can do it today. For them, access to foreign exchange is difficult. We create FX, therefore we have access to FX and their access to FX is limited.
Kyari's comment confirms an earlier report by Legit.ng that oil marketers (except the NNPCL) had suspended the importation of the product because of their inability to access forex.
Despite an increase in oil prices of more than 30% since July, gas station prices have remained stable, which has raised suspicions that the government may have reinstated a partial subsidy.
Although Kyari did not explicitly address the charge, he did claim that current prices demonstrated the market is adjusting itself.
NNPC Limited had earlier announced that it had successfully secured $3 billion in crude-for-cash funding from the African Export-Import Bank (Afreximbank).
NNPCL Shuns Dangote Refinery, Swaps Crude Oil for Loan with Others
A source in the Nigerian National Petroleum Company Limited (NNPCL) has stated that the company signed crude oil contracts with several entities, Legit.ng reported.
As contained in a Punch report, the development prevented the company from initially meeting Dangote's demand.
The Executive Director, of Dangote Group, Devakumar Edwin, claimed in a Monday interview with S&P Global Commodity Insights that the NNPCL had committed its crude to other organisations.
Source: Legit.ng
