Key players in Nigeria’s downstream oil and gas industry are taking steps to break the monopoly held by the Nigerian National Petroleum Company Limited (NNPCL) on petrol importation. These industry stakeholders are advocating for fair access to foreign exchange rates that will benefit their businesses. They are also raising concerns about the implementation of the Petroleum Industry Act (PIA), particularly regarding the withdrawal of petrol subsidies.
According to the marketers, the NNPCL is strategically maintaining its monopoly on product importation to gain an advantage in the market. To prevent a potential scarcity of petroleum products nationwide, industry stakeholders are convening in Abuja to engage with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The objective of this meeting is to seek clarity on license issuance and product importation guidelines as outlined in the PIA.
A reliable industry source, speaking to our correspondent, revealed that if the government fails to fully liberalize the market, marketers may consider rejecting NNPCL products. The source emphasized the need for fair competition and a level playing field, suggesting that the government should not allow NNPCL to access foreign exchange at official rates while expecting independent or major marketers to obtain forex from the parallel market. The source also stressed that the responsibility for import licenses should lie with the NMDPRA, which plays a pivotal role in creating opportunities for the market’s growth.
The emergency gathering in Abuja will play a decisive role in determining the market’s trajectory in the coming days. If marketers are denied access to forex and discover that NNPCL products are priced higher than expected, they may have no choice but to reject those products. Such a scenario could lead to scarcity, which contradicts the objectives of the PIA.
Notably, President Bola Tinubu recently met with marketers in Abuja to discuss strategies for addressing challenges arising from subsidy removal. Mrs. Winifred Akpani, Chairman of the Depot and Petroleum Marketers Association of Nigeria (DAPPMAN), expressed the major oil marketers’ unwavering support for the federal government during a press briefing held after the meeting.