LAGOS, Nigeria — Emadeb Energy Services Limited, an oil marketer, has become the first to seize opportunities in Nigeria’s deregulated downstream oil sector, importing 27 million litres of Premium Motor Spirit, PMS, also known as petrol, for domestic use.
The shipment, which arrived on the vessel ST NENNE at Emadeb Jetty in the Ijegun area of Lagos on Wednesday, July 19, 2023, is reported to have cost approximately $17 million.
The CEO of Emadeb Energy Services, Debo Olujimi, appealed to the federal government during a ceremony in Lagos to reveal the product.
Olujimi urged the government to create a dedicated avenue for sourcing foreign exchange for petroleum products.
“We call on the government to help in finding a window where these issues of dollars are resolved, and we can have a fixed market rate to bring in this and access this without any condition just for the PMS, then it will go a long way to ease the sufferings of Nigerians,” Olujimi said.
Meanwhile, Bashir Sadiq, the Executive Director of Corporate Services and Administration of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, underscored the goal of deregulation — opening up the oil sector to increased participation.
“When discussing deregulation, people just think about a price increase. It is not; it is opening up the space for more participation,” said Sadiq.
The importation by Emadeb Energy Services is a significant development in Nigeria’s oil sector, indicating the increased opportunities that a deregulated market can provide for industry players and its potential impact on the Nigerian economy.
Fuel Subsidy Aftermath: Auto Mechanics Struggle with Surge of Uncollected Cars
The auto mechanic shops in Umuahia, the capital city of Abia State, are dealing with an unusual problem — a glut of cars left uncollected by their owners.
This unexpected logjam has followed the removal of fuel subsidies by the Nigerian Federal Government, which has driven fuel prices up to N530 per liter, causing financial stress for car owners and decreased patronage for mechanics.
In an interview with journalists on Friday, July 7, 2023, mechanics Cletus Iwundu and Kelechi Nonso reported a severe drop in their business earnings since the subsidy removal on June 1, 2023.
Many of their customers, they claimed, have left their cars in the workshops, even after all repairs had been completed.
“Our workshops are becoming car parks,” lamented Iwundu. “The customers complain about the cost of maintaining their cars and just leave them here.”
To add to the situation’s complexity, the mechanics disclosed that some customers have requested them to find buyers for their vehicles, unable to bear the burden of the new fuel prices.
“Some of my customers told me that they will collect their cars after they receive their salaries,” Nonso added.
A tour around Ohiya auto mechanic village — the largest auto market in Umuahia, situated along the Enugu-Port Harcourt Express Way — and several other local workshops, confirmed this developing trend.
The removal of fuel subsidies has led to broader economic hardship, with effects rippling out into sectors as diverse as auto repair.
As Nigeria grapples with the economic aftershocks of removing its long-standing fuel subsidy, it’s becoming clear that the consequences reach far beyond the gas pump.
Whether this move will prove beneficial in the long run, as some economists argue, is a debate that provides little solace to the struggling mechanics of Umuahia.
