- The Nigerian Midstream and Downstream Petroleum Authority (NMDPRA) has announced an increase in the number of private companies licensed to import fuel into the country. The count has now reached six.
- Farouk Ahmed, the Managing Director of NMDPRA, shared this information during a press briefing at the state house on June 19.
- Several companies applied for fuel importation licenses, and six of them have been approved so far, expanding the private sector’s involvement in fuel importation in Nigeria.
The leadership of the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA) has said that the number of private companies that are permitted to import fuel into the country has recently expanded to six.
The Managing Director of the NMDPRA, Engr. Farouk Ahmed made this announcement during a press briefing at the state house on June 19. He revealed that numerous companies had applied for licenses to import fuel into Nigeria, and thus far, six of them have been granted approval.
However, he did not name the companies who have been granted the license. This development signifies a notable increase in the pool of private companies participating in the importation of fuel, potentially promoting competition and enhancing the efficiency and availability of fuel supplies within the country.
He said:
- “There are six companies who said they want to import fuel in July. Of course, all the others may import in December in November, or anytime but for those who expressed interest to bring in fuel in July, there were six of them as of this morning.
- “The beauty of it is that there are interests which means that they have been able to have access to foreign exchange to import.
- “Now, as we go along, of course, we will be briefing you on the progress or the achievements so far, but the important thing is that NNPC has 30 days fuel sufficiency, so we do not anticipate any gap in supply or in distribution.”
Ahmed also said that any company with an interest in importing fuel can apply as it was open to all. Meanwhile, he also addressed the rumors making the rounds that the Nigerian National Petroleum Company Limited (NNPCL) had granted a fuel import license to Dangote Refinery.
He said the NNPCL had no power to grant such a license. It is important to note that Garba Deen Muhammad, the Chief Corporate Communications Officer at NNPCL, clarified in a chat with Nairametrics, that licenses are issued by regulatory bodies, not the NNPCL.
He emphasized that the NNPCL is a limited liability company and cannot grant licenses.
Backstory
Nairametrics had reported on June 14, that the NMDPRA announced that three oil marketers will start importing petrol into Nigeria in July 2023 as it said the Nigerian National Petroleum Company Limited (NNPCL) will no longer be the sole importer of petrol.
Mele Kyari, the Group Chief Executive Officer of the NNPCL had previously said that in the last four months, the company had practically terminated all Direct Sale Direct Purchase (DSDP) contracts. So, by importing less fuel, private companies can import the bulk.
