The Nigerian National Petroleum Company Limited (NNPC) has made the decision to spend about N834 billion monthly on fuel importation into the country. This new development comes following the recent halt of oil swaps by the company.
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Currently, NNPC is the only petrol importer in Nigeria, and only recently has begun buying petrol with cash tenders rather than oil swaps.
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For over a decade, petroleum has been imported into Nigeria through a trade-by-barter means where crude oil is sold to refiners, who in turn supply Nigeria with refined petroleum products.
Recent data from the Nigerian Midstream and Downstream Regulatory Authority (NMD-PRA) shows that between June 1 and June 28, 2023, the petroleum consumption in Nigeria totalled 1.36 billion litres, with an average ex-depot price of the product being N580 per litre.
On the other hand, Oil marketers in Nigeria have found it challenging importing petrol into the country, citing access to Forex exchange as their challenge.
However, in a meeting with NMDPRA, oil marketers in Nigeria noted that the Federal Government woul allow them to access Forex in the official market with a unique arrangement so they can begin petrol importation again.
Repprts also notes that NNPC ownes $3 billion in oil swap and the company os expected to pay the last debts under the oil swaps by the end of November, 2023.
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