Petroleum product marketers in Nigeria are issuing a dire warning to the nation as retail outlets are being forced to shut down operations due to the soaring costs of doing business.
Speaking at the National Executive Council meeting of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) in Abuja, the marketers did not mince their words, pointing fingers at the government for its handling of the removal of petrol subsidies.
The marketers assert that President Bola Tinubu’s administration failed to put in place essential measures before implementing the subsidy removal.
They argue that the nation’s refineries should have been up and running, and issues surrounding foreign exchange rates should have been resolved beforehand.
The Federal Government is further criticized for its inability to curb the illicit trading of dollars within the country, which is exacerbating the challenges faced by petroleum retailers.
NOGASA President, Mr. Benneth Korie, voiced his concerns, emphasizing that the downstream sector of the oil and gas industry is under immense pressure.
He revealed that many depot owners are struggling due to the rising costs of crude oil and exchange rates. This has left numerous depots deserted, as owners grapple with high interest rates when seeking bank loans.
Worst hit are filling stations, as their proprietors face insurmountable challenges securing funds to procure products. Independent and major marketers alike are in dire straits, with filling stations closing daily and dealers teetering on the brink of bankruptcy.
The situation paints a grim picture for Nigeria’s energy sector, as these challenges threaten to deepen the nation’s economic woes. It remains to be seen how the government will respond to these pressing concerns.
