Forex Shortage Threatens Petrol Importation in Nigeria – The much-anticipated benefits of the deregulation of Nigeria’s downstream sector are yet to materialize. Oil marketers express growing concerns over their inability to import petrol, pointing squarely at the prevalent dollar scarcity in the nation.
Despite the fervent calls for the removal of fuel subsidies and the deregulation of the downstream sector, the Nigerian National Petroleum Company Limited (NNPCL) remains the dominant player in petrol importation, maintaining a de facto monopoly. The optimism that deregulation would end the NNPCL’s stranglehold and the recurrent fuel shortages has been dampened.
Emadeb Energy’s importation of 27 million liters of petrol in July stands as a solitary instance of independent action. Since then, no other independent oil marketers have managed to import petrol, leaving the NNPCL as the solitary provider. This concentrated control jeopardizes the nation, making it vulnerable to the recurring menace of fuel shortages.
Mike Osatuyi, National Controller Operations of the Independent Petroleum Marketers Association of Nigeria, cited the paucity of forex and the escalating crude oil prices internationally as the primary deterrents for marketers.
However, an inside source from NNPCL refuted claims of dependency on the corporation, stating, “Why are they still dependent on NNPCL for products?” emphasizing the deregulated nature of the sector and urging other licensed marketers to take initiative.
Fuel scarcity has reared its head twice since the government’s announcement of deregulation and subsidy removal. While some attribute it to stock shortages, others, like the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, assures of sufficient product availability.
The forthcoming Dangote refinery, with a daily capacity of 650,000 barrels, was a beacon of hope for many. However, delays have led PENGASSAN’s president to urge the Federal Government to focus on completing local refineries, like the Port Harcourt Refinery, instead of relying on Dangote.
IPMAN’s Osatuyi remains hopeful, suggesting that Dangote’s delays could be due to internal challenges. He advises patience and underscores the importance of supporting local refineries.
With these ongoing challenges, the nation’s oil marketers and stakeholders continue to navigate the complex landscape, hoping for a stable, self-sufficient future for Nigeria’s petroleum sector.