The Nigeria’s Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that forex illiquidity has constrained Oil Marketing Companies’ ability to import the product.
The agency also revealed that domestic consumption of Premium Motor Spirit (PMS) also called petrol in Nigeria has significantly dropped by 33.58 per cent from 66.7 million litres before the deregulation to 44.3 million litres per day.
Authority Chief Executive, (ACE) NMDPRA Farouk Ahmed, disclosed this in his keynote speech at the opening session of the Oil Trading and Logistics (OTL) Africa Week 2023, in Lagos on Monday.
He also emphasised that eight wholesale petroleum product suppliers out of 94 licenced oil marketers issued permits to import into the country and delivered eight cargoes of PMS totaling 251,000 MT (291,238,670.69 litres) between June and September 2023.
The ACE further emphasised that the drop in the number of licensed importers that delivered cargoes of petrol into the country was due to the challenge of forex illiquidity which has constrained the Oil Marketing Companies’ ability to import the product.
He expressed optimism that the necessary efforts being taken by the government to improve the stability of the harmonised forex market will support the importation of PMS by more Oil Marketing Companies alongside NNPCL.
Ahmed said, “Supply of Petroleum products is expected to be further enhanced and secured by the coming on stream of Dangote Refinery and the rehabilitation of NNPC refineries in the short to medium term.
Speaking about efforts of the Nigerian Government towards ensuring that the overall National Energy Security of the country is administered in a manner that optimises position within the complex global energy dynamics.
The NMDPRA Boss stated that a critical pillar for pursuing a structured energy transition in Nigeria is the adoption of gas as a transition fuel and the emplacement of strategic gas development frameworks through the Decade of Gas Program (DOGP).
He said, “The DOGP will ensure the accelerated growth of gas processing, storage, transportation, retail, and utilisation in Nigeria within the decade. The program has optimal industry inclusiveness and is making steady progress in the implementation of all its strategic objectives, initiatives and projects.
Ahmed therefore emphasised that the full deregulation of the sector has further enhanced our capacity to adopt CNG as a more sustainable and affordable alternative automotive fuel.
He said, ” President Bola Ahmed Tinubu has launched the Presidential initiative on CNG (PiCNG), with the focus of providing immediate and long-lasting infrastructure for modern mass transit systems.
He therefore stated that the PiCNG has already commenced work and is adequately supported with all necessary tools including required funding to meet its aspirations.