By Abdulkareem Haruna

The arrival of the first independent petroleum import, carried by the vessel ST Nnene, signifies a landmark shift in Nigeria’s downstream oil market.

A 27 million litres batch, imported by Emadeb Energy, arrived at Ijegun-Egba on Wednesday, breaking the monopoly previously held by the Nigerian National Petroleum Company Limited (NNPCL).

The vessel arrive 48 hours after the Nigerian government jerks up pump price of petrol to N617, further worsening the plights of citizens yet to overcome the shocks of a recent hike in June.

ST Nnene’s arrival had been delayed due to weather conditions near Lome. The importation, costing around $17m (N13b), was financed by Emadeb Energy’s CEO, Adebowale Olujimi, and partners from five financial institutions, including Polaris, First Bank, Union Bank, Access Bank, and Fidelity bank.

The deal was executed amidst a foreign exchange increase from N745 to N845 per dollar over the past three weeks and a surge in crude prices to $80 per barrel.

The NNPCL, which dictated fuel prices and managed all petrol imports, had monopolized the downstream market for years. However, with the recent cessation of subsidies by President Bola Tinubu, petrol prices have escalated from an average of N180/N200 per litre to N614 per litre.

Olujimi emphasized the unsustainability of petrol importation, advocating for the revival of local refineries. The Nigerian Midstream and Downstream Petroleum Regulatory Authority echoed this sentiment, viewing this development as a significant milestone in the deregulated downstream sector. The Independent Petroleum Marketers Association of Nigeria also touted the benefits of allowing independent marketers to import, predicting increased competition and fairness in the sector.