Federal Government Suspends Fuel Importation (Says LeadershipNigeria)

Philip Nyam

30 October 2009

Abuja — As part of its preparation towards the commencement of deregulation of the down stream sector, the federal government has banned the importation of finished petroleum products for one month.

This was disclosed yesterday by the executive director of Petroleum Products Pricing and Regulatory Agency (PPPRA) when he appeared before the House of Representatives committee on petroleum resources (down stream).

The implication of the suspension was that there would be dislocation in the supply chain leading to panic buying and artificial scarcity.

According to the executive director, the PPPRA has withheld the approval and licence for the importation of petroleum products into the country for a whole month following a directive from the presidency.

"NNPC was importing 47 per cent of the total oil import and other oil marketers were importing 53 per cent," it was revealed.

An Assistant General Manager, Alhaji Abner Ishiaku who represented the Executive Director of PPPRA told the lawmakers that the agency withheld approvals to products importers for a month because it was waiting for the government to commence the deregulation of the petroleum sector.

He explained that PPPRA only gives approval and that it was the Department of Petroleum Resources that issues licences for importation, adding that PPPRA had even sent its requests for approval to the Presidency but got no response.

Reacting to the revelation, chairman of Depot and Petroleum Marketers Association of Nigeria (DAPMAN), Mr. S. Okoli faulted the PPPRA, saying that the directive of PPPRA on importation of finished products by DPR was deceptive.

"Listening to the PPPRA, it means they don't have the approval from whatever authority to issue licences," he told the committee.

He explained that the PPPRA was telling Nigerians that the government no longer has the funds to continue subsidising imported petroleum products.

In a related development, the Nigeria National Petroleum Corporation (NNPC) denied that it has a cartel that collects $500, 000 (N75 million) daily from oil importation.

Group Executive Director, Alhaji Aminu Babakusa who represented the GMD NNPC, Dr. Mohammed Sanusi Barkindo said that there was no truth in the allegation levelled against the NNPC by a daily newspaper, adding that the Corporation was not angling to be a monopoly.

The committee, through the Deputy Chairman, Hon. Bamidele Aro had earlier in the week summoned the Group Managing director of Nigerian National Petroleum Corporation (NNPC), Mohammed Sanusi Barkindo, and the Managing Director, Pipeline and Products Marketing Company (PPMC), Reginald Stanley to appear before it over allegations a clique in the NNPC and PPMC were receiving $500,000 (75 million) daily from fuel importation into the country to the detriment of the country.

Plz can someone explain 2 me d or even detail of d meaning of "deregulation" b4 i comment on dis issue

Yes deregulation is a supply sided aid. Elementary Economics describes that when supply is shortened at the expense of demand, the price increases and the consumers suffer. This is the scenario we're looking at.

Until there is a BLOODY REVOLUTION we will not get out of this mess

@slimm God bless u.Nigerian masses will suffer this time from N65 to N104=N39 difference not d rich politicians or yar adua