NNPCL Official Warns Nigerians to Prepare for Extended Fuel Scarcity

Nigerians have been warned to brace for potential fuel shortages following the recent increase in petroleum pump prices.

Adedapo Segun, Executive Vice President of the Nigerian National Petroleum Company Limited (Downstream), made this announcement during an appearance on Arise Television’s Morning Show on Thursday.

Segun highlighted the need for a competitive market to stabilize fuel prices and supply in Nigeria, noting that the current pump price does not accurately reflect market conditions.

“The current pump price is not reflective of the market. NNPCL being the sole importer of Premium Motor Spirit (PMS) is not ideal. We should transition to a market-driven pricing model,” he said, emphasizing that fuel prices should be determined by market forces rather than by a single entity.

He explained that NNPCL’s role as the exclusive importer of petrol was not a strategic choice but a reaction to market dynamics. “NNPC is not a regulator. We didn’t opt to be the sole importer. We filled the gap left when others reduced their participation. It’s not about seeking a monopoly,” Segun clarified.

For fuel prices and supply to stabilize, Segun stressed the importance of having optimal market conditions and adequate foreign exchange liquidity. “Perfect market conditions and FX liquidity are crucial,” he said, suggesting that broader economic reforms might be needed to address the fuel pricing issues.

NNPC is collaborating with private refineries, such as Dangote, to ensure a consistent supply of crude oil for refining. “We have provided approximately 30 million barrels to Dangote so far, including 6.3 million this month and a planned 11.3 million in October,” Segun added.