Posted in Business
The Nigerian National Petroleum Corporation (NNPC) yesterday said that companies in the upstream oil and gas sector are to provide foreign exchange for the importation of petrol into the country.
The Group Executive Director/Chief Operations Officer, Downstream, Mr. Henry Ikem-Obih broke the news after inspecting the sale of fuel at some Abuja petrol stations.
This is coming as the NNPC announced that Nigeria’s three refineries will begin production this month.
On measures to tackle the scarcity of foreign exchange for marketers in order to enable them import products considering the recent second quarter allocation given to the oil dealers, Ikem-Obih said: “As you know, forex was one of the prime reasons why we didn’t do well in the first quarter. Most marketers who had allocations could not import because they couldn’t access forex.
“The minister has worked very closely through his own initiatives with the upstream oil companies. So, we have a number of them onboard with us and they will support the local entities and downstream companies.
“They will help provide forex for the downstream companies to import and meet their PPPRA allocation. So, through the Central Bank of Nigeria, NNPC will support importation of fuel in the second quarter and the oil companies too will work with us. With this combined efforts, we hope we will be able to meet the import allocation for Q2.”
Ikem-Obih also noted that Nigeria’s three refineries would begin production this month, adding that they would produce locally refined petrol.
He said: “Most of the work being done at the refineries are on site, that is, just getting them ready to start cracking crude so that they too can start contributing to the pool of the amount of fuel we have to distribute across Nigeria. We have to ensure that within the month that we have some local refining contributing to the amount of fuel we have to distribute across the country.
“The work will be across the three locations and they are all at various stages of start-up. And in terms of moving them to their optimal yield, there is a lot of work going on and we are hoping that within this month of April we will also have locally produced fuel as part of what people are buying at the pumps.”