Emadeb Energy Services Limited has successfully imported over 27 million litres of petrol into Nigeria, marking the first private importation since the elimination of subsidies and the subsequent deregulation of the petrol marketing sector in May 2023. This milestone establishes Emadeb Energy as the first private oil marketing company to achieve such a feat under the new regime.
The cargo, valued at over $17 million and with significant foreign exchange components, arrived in the country, signaling a significant shift in the fuel importation landscape. Prior to this, the Nigerian National Petroleum Company Limited (NNPC) held a monopoly as the sole importer of petrol due to the withdrawal of private marketers from the importation process, mainly attributed to the subsidy and regulated pricing regime and foreign exchange challenges.
Emadeb Energy’s Chief Executive Officer, Mr. Adebowale Olujimi, expressed the company’s commitment to actively participate in ensuring a steady supply of petroleum products in the country. Despite the elimination of petrol subsidies, Olujimi emphasized the importance of domestic refining as the most viable path to achieve energy security, considering the substantial foreign exchange implications of relying on imported goods.
Mr. Olujimi further elaborated on the strategic decision to import the goods early, positioning the company to seize the opportunities presented by the new marketing regime. He applauded President Bola Tinubu’s bold move to eliminate the petrol subsidy and establish a free market system in the downstream industry, which paved the way for Emadeb Energy’s successful importation.
Emadeb Energy, recognized as a reputable oil marketing firm, sought to alleviate public concerns about potential market abuse in the deregulated environment, emphasizing their commitment as business people, not profiteers, and their dedication to the welfare of Nigerians. The importation of 27 million litres of petrol by Emadeb Energy was highly praised by regulatory authorities.
Mr. Farouk Ahmed, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), affirmed that the event demonstrated the successful implementation and acceptance of deregulation in the country. This milestone highlights how cooperation among industry stakeholders can diversify the nation’s energy supply.
Mr. Ahmed reiterated that the regulation goes beyond pricing and is about opening up the market for increased competition. He assured that NMDPRA is committed to ensuring proper service delivery and pricing for the benefit of the people, collaborating with relevant industry stakeholders.
In response to recent fluctuations in gas prices, Mr. Ahmed explained that petrol prices are influenced by global rates and are denominated in dollars, making them susceptible to exchange rate fluctuations. Emadeb Energy’s pioneering importation stands as a testament to the potential of a deregulated market and private sector participation in ensuring a stable and diverse energy supply for Nigeria’s economy.