“Petrol to Sell for N1,000/Litre”: Marketers Raise Concern Over NNPC’s Monopoly as FX Scarcity Bites
Recent Concerns Raised by Oil Marketers in Nigeria
During the Oil Trading Logistics Africa Downstream Energy Week in Lagos, oil marketers expressed their concerns about the dominance of the Nigerian National Petroleum Company (NNPC) Limited in the petrol importation sector.
Tunji Oyebanji, Chairman of Oil Trading Logistics and CEO of 11 Plc, highlighted that NNPC's monopoly prevents independent marketers from importing petrol due to challenges in accessing competitive forex exchange rates.
Oyebanji emphasized that this monopoly leads to unfair competition, as NNPC operates under different conditions than other downstream companies.
Dr. Emeka Akabogu, the Executive Vice Chairman of OTL, emphasized the need for collaboration among stakeholders to enhance the downstream sector.
He criticized the timing of the deregulation and removal of fuel subsidy, as outlined in the Petroleum Industry Act (PIA).
Akabogu pointed out that removing the subsidy amid high international crude prices and the naira floatation was ill-timed, suggesting it has affected the industry's stability.
On another note, the NNPC announced securing $3 billion in crude-for-cash funding from the African Export-Import Bank (Afreximbank).
Additionally, the company disclosed changes in its senior management team, stating that three Executive Vice Presidents, initially set to retire in 2024, were asked to leave immediately.
The industry remains in a state of flux despite the PIA's passage after nearly two decades. The concerns raised underscore the challenges and ongoing discussions necessary to ensure fair competition and stability in Nigeria's downstream sector.
[Source:](Punch report and Legit.ng)