Major Fuel Scarcity Crisis Averted as NMDPRA Engages CBN to Get Forex for Oil Marketers
- The NMDPRA has met with oil marketers to resolve the challenges faced with the importation of petrol
- The regulatory authority has also engaged the CBN to facilitate the availability of forex to oil markets
- The moves are aimed at averting an imminent fuel scarcity crisis that may occur as a result of a shortage in the supply of petrol
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Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
An imminent fuel scarcity crisis seems to have been contained as the Nigerian Midstream and a Petroleum Regulatory Authority (NMDPRA) is currently engaging with the Central Bank of Nigeria (CBN) to facilitate smoother access to foreign exchange.
According to the NMDPRA, the move is aimed at enabling additional marketers to bring in petrol imports into the country.
Over the past few weeks, oil marketers have been grappling with a multitude of obstacles.
Source: UGC
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These include difficulties obtaining foreign exchange for petroleum product imports, the poor state of road infrastructure for nationwide distribution, the non-operational status of the country's refineries, and banks' reluctance to extend credit to oil and gas enterprises.
Only NNPCL importing petrol
It would be recalled that the NNPCL had previously announced its intention to cease being the exclusive importer of petrol into the nation merely five months ago.
However, it has now returned to being the sole importer of petrol, according to revelations by the Group Chief Executive Officer of the NNPCL, Mele Kyari, during an Energy Labour Summit in Abuja.
This resurgence in its exclusive role stems from the challenges private companies face, which have encountered difficulties in importing petroleum products owing to their struggles with accessing foreign exchange, primarily due to shortages.
As it stands, the NNPCL, which currently operates numerous retail outlets, is struggling to meet their demands and might soon be unable to supply third parties.
Stakeholders in the sector fear that if the NNPCL remains the sole importer of petrol, it may not be able to meet the demand across the country, giving room for a scarcity crisis to reoccur.
Ongoing discussion with CBN to access forex
The chief executive of the NMDPRA, Farouk Ahmed, held discussions with oil marketers' representatives to address the issues surrounding the importation and efficient distribution of petroleum products in the nation,
According to NAN, Farouk expressed confidence that the ongoing internal restructuring within the CBN will lead to a swift resolution of the situation.
He said:
We have been discussing with the government and if you must have observed that a lot of work is going on within the CBN in terms of their internal restructuring which will make available the dollar as soon as everything stabilises.
He said the regulatory authority is actively striving to enhance crude oil production, which will increase revenue for the country and bolster foreign reserves.
He added that these elements contribute to the collective efforts to achieve stability for the Nigerian currency, the naira.
FG speaks on fuel subsidy return as petrol stations shut down
In related news, Legit.ng reported that the Federal Government, acting through the Nigerian National Petroleum Company Limited, has refuted claims of reinstating the subsidy on Premium Motor Spirit (PMS), commonly referred to as petrol.
Mele Kyari, the group chief executive officer of NNPCL, made this clarification following a meeting with President Bola Tinubu at the Presidential Villa in Abuja on Monday, October 9, 2023.
Kyari affirmed that the Nigerian government has not resumed the practice of subsidising petrol.
Furthermore, he explained that the company operates within the market dynamics and acknowledges the challenges marketers face in importing petrol.
Source: Legit.ng
