…By Larry John for TDPel Media. Emadeb Energy Services Limited, a Nigerian company, has become the first private company to import approximately 27 million litres of petrol into the country following the subsidy removal.
This significant milestone marks a shift from the Nigerian National Petroleum Company (NNPC) Limited being the sole importer of petrol.
Adebowale Olujimi, the CEO of Emadeb, shared this news during a speech at the company’s jetty in Lagos, highlighting the cargo’s value exceeding $17 million.
Emadeb’s Strategic Move and Market Dynamics:
Olujimi explained that the decision to import petrol was driven by the company’s strategic vision to capitalize on the new marketing regime’s potential. He emphasized the cargo’s substantial value and the challenges posed by the current foreign exchange rates.
Although Emadeb has successfully imported 27 million litres of Premium Motor Spirit (PMS), Olujimi stressed the importance of reviving local refineries as a sustainable solution for the country’s fuel needs.
Embracing Deregulation and Demonstrating a Successful Business Model:
The CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, commended Emadeb’s achievement, underscoring the significance of the downstream industry’s deregulation.
Represented by Sadiq Bashir, the executive director of corporate services and administration at NMDPRA, Ahmed noted that the milestone signifies the removal of fuel subsidies and the successful application of a business model in Nigeria’s energy sector.
This development showcases the potential for diversifying the energy supply by collaborating with stakeholders in the industry.
NMDPRA’s Role in Market Opening and Ensuring Energy Supply:
Ahmed emphasized that deregulation is not solely about pricing but also about creating an open market.
NMDPRA’s objective is to guarantee a stable supply of petrol by issuing licenses for importation and encouraging the establishment of refining companies in the downstream sector.
By promoting local production, the aim is to reduce reliance on petrol imports and ensure a consistent and reliable energy source within the country.
Conclusion:
Emadeb Energy Services Limited’s importation of 27 million litres of petrol marks a significant milestone in Nigeria’s post-subsidy era.
Their strategic decision to venture into importation showcases their commitment to capitalizing on the new marketing regime while emphasizing the importance of reviving local refineries for long-term sustainability.
This achievement demonstrates the successful implementation of a business model in the Nigerian energy sector, in line with the deregulation efforts undertaken by the NMDPRA.
By embracing market opening and diversification, Nigeria aims to secure a stable and self-reliant energy supply.
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