Expansion of the Market the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has initiated the process of licensing additional oil marketers for the importation of petrol, aiming to break the monopoly previously held by the Nigerian National Petroleum Company Limited (NNPC). This move is expected to promote competition, potentially leading to a decrease in petrol prices for Nigerian consumers, provided there is no price fixing.
Ensuring Fair Practices Mr. Farouk Ahmed, Chief Executive of the NMDPRA, emphasized the regulator’s commitment to preventing exploitation of Nigerians by downstream businessmen, even in a deregulated market. As the NNPC gradually reduces its importation activities to comply with the Federal Competition and Consumer Protection Council (FCCPC) regulation, which limits market control to 30%, there is a need to fill the resulting gap with new importers.
Licensing Process and Collaboration the NMDPRA is actively processing licenses for interested oil marketers, with some already having made applications. The agency aims to ensure a smooth supply of petroleum products, working closely with the NNPC and other importers. Collaboration with security agencies was also discussed during the meeting, highlighting the importance of enhancing the movement of petroleum products and ensuring transparency and quality standards.
