Oil & Energy
Subsidy Removal: Emadeb Alters NNPCL Monopoly … Imports 27m Litres Of Petrol
The deregulation of the down stream sector has appeared to be yielding the desired result as Emadeb Energy has imported 27 milion litres of Premium Motor Spirit (PMS), popularly called petrol, into the domestic market at a cost of over $17 million.
Chief Executive Officer (CEO), Emadeb Energy, Debo Olujimi, disclosed this while taken delivery of the PMS cargo at its Ijegun Satellite Depot in Lagos, Weekend.
The move by Emadeb Energy signaled the end of NNPCL monopoly which it has enjoyed for several years when it assumed the importer of last resort as a result of the inability of major oil marketers to continue petroleum products importation due to Foreign exchange crisis.
Emadeb is one of the oil marketers licensed by the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) and one of the very first to resume petrol imports after the removal of fuel susbsidy by President Bola Tinubu on May 29, 2023.
“Now that private companies had been granted licences to import petrol, this is actually the way forward. It is a known fact that the increase in price of petrol has been a huge pressure on Nigerians which we all understand.
“The only way to address the ongoing challenge is for government to encourage local refining, having local refineries is the only way forward because foreign exchange determines the price of petrol. As at Friday, dollar was at N834.
“Government should assist marketers to access dollar on a single CBN E&l window pending when local refineries will be able to work.
“This will be sustainable, so that all marketing companies can pledge on how to import petrol into the country”,Olujimi stated.
The Emadeb boss commended President Tinubu for deregulating the downstream sector, adding that the company looks forward to a sustainable development in oil and gas sector.
“NNPCL has been the sole supplier and we decided to import to cushion supply. We are a responsible company and we know what Nigerians are passing through. So, we will not inflate price or engage in profiteering of the product because we are God fearing people.
“We urge government to help to find a window where forex is resolved to have a fixed market rate for importation of fuel”, he said.
The Authority Chief Executive, NMDPRA, Ahmed Farouk, commended Emadeb’s bold step toward importing petrol despite the fluctuation in foreign exchange rate.
Farouk, who was represented by the Executive Director, Corporation Services and Administration, NMDPRA, Sadiq Bashir, said the company had made significant progress geared toward effective product distribution, adding that deregulation was not all about pricing but opening up the market.
“We, at NMDPRA, will also ensure quality supply of petrol and quality in product. Prices change and market forces also determine the market. Petroleum product price is denominated in Dollars and the product is bought in foreign exchange.
“The price are benchmarked with the international price,” he said.
Secretary General, Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Olawale Afolabi, said deregulation had helped in opening the market.
Afolabi said the significance was that Emadeb had taken the bull by the horn to bring in product against NNPCL, who used to be the sole importer insisting that deregulation should be based on local production.
Afolabi argued that petrol price increase was affecting Nigerians because the variables at international oil market cannot be determined by the government.
He urged investors to come and invest in refining, so that Nigeria can have local refineries.
National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, commended Emadeb for commencing importation under post subsidy removal regime.
“We laud the courage, in spite of all the prevelling challenges. The era of monopoly of product has done.
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Oil & Energy
Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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