Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the country’s domestic consumption for petrol has reduced by 33.58 percent.
This is a significant dropped from 66.7 million liters, before the deregulation, to 44.3 million liters per day.
This was revealed by the Chief Executive of NMDPRA, Farouk Ahmed.
Ahmed disclosed this in his keynote address at the opening session of the Oil Trading and Logistics (OTL) 2023 Africa Week on Monday in Lagos.
The NMDPRA boss said eight wholesale petroleum product suppliers out of 94 licensed oil marketers were issued permits to import into the country.
According to Ahmed, those licensed delivered eight cargoes of petrol totaling 251,000 MT (291,238,670.69 litres) between June and September.
He pointed that the drop in the number of licensed importers was due to the challenge of forex illiquidity. He noted that this had constrained the oil marketing companies in their ability to import the product.
Ahmed, however, expressed optimism that with the necessary efforts taken by the government the situation would improve. He said the stability of the harmonized forex market would support the importation of petrol by more oil marketing companies. These companies, he said would complement the Nigerian National Petroleum Company Ltd in the importation of fuel.
“Supply of petroleum products is expected to be further enhanced and secured by the coming onstream of Dangote Refinery. It would also be reinforced by the rehabilitation of NNPCL refineries in the short to medium term.
“The efforts of the Nigerian government towards ensuring that the overall national energy security of the country is administered in a manner that optimizes position within the complex global energy dynamics.
Ahmed said that a critical pillar for pursuing a structured energy transition in Nigeria is the adoption of gas as a transition fuel. He said this would be done through the emplacement of strategic gas development frameworks through the Decade of Gas Program (DOGP).
“The DOGP will ensure the accelerated growth of gas processing, storage, transportation, retail, and utilization in Nigeria within the decade.
“The programme has optimal industry inclusiveness. And it’s making steady progress in the implementation of all its strategic objectives, initiatives and projects,” he said.
Ahmed, therefore, noted that the full deregulation of the sector had further enhanced the nation’s capacity to adopt Compressed Natural Gas (CNG). As it has provided a more sustainable and affordable alternative automotive fuel.
“President Bola Ahmed Tinubu has launched the Presidential initiative on CNG (PiCNG). This is to focus on providing immediate and long-lasting infrastructure for modern mass transit systems.”
Ahmed stated that the PiCNG had already commenced work. And it is adequately supported with all necessary tools, including required funding to meet its aspirations.
