The long-standing monopoly held by the Nigerian National Petroleum Company Limited.(NNPC) as the sole importer of petroleum products into Nigeria has been broken by Emadeb Energy Services Limited.
Significant of the the deal
While the new shipment means improvements in the country’s fuel supply chain, the huge cost of importing the product, means that Nigerians will continue to payabove N600 per litre.
At the time of importation a barrel of crude oil is sold at $80, and naira has depreciated significantly against US dollar.
Punch reports that Adebowale Olujimi the Chief Executive Officer of Emadeb Energy , and its five bank partners paid over $17m (about N13 billion) to hire just the vessel called ST Nnene that move the product from Togo where the shipment landed to Nigeria.
The five banks involved in the huge deal include:
- First Bank
- Union Bank
- Access Bank
- Fidelity bank
Emadeb Energy speaks
Olujimi who was on hand to received the the vessel, ST Nnene where it birthed atIjegun-Egba said petrol importation was no longer sustainable.
According to him, the federal governmentmust find a way to revive Nigerian refineries.
“Petrol importation is not a sustainable way for a country to run. From what we saw yesterday when PMS price rose to over N600 per litre, it is an indication that the dynamics of the business is a tough one.
“It requires huge US dollars to bring in this. The way forward is for local refineries to be revived.”