Key petroleum products marketers have called on the Federal Government of Nigeria to pay their outstanding debts, which were incurred before removal of petrol subsidy. They noted that such paid debts, running into several millions of naira, and lack of foreign exchange (FX) for importation of petroleum products are about to crash their businesses.

The plight of the oil marketers was disclosed by the National President of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Mr. Bennett Korie has called on the Federal Government of Nigeria to immediately declare a state of emergency on refineries.

NOGASA President then urged the federal government to come up with an emergency palliative in the area of FX, proposing to the Federal Government an “Emergency Palliative Measures” for marketers such that fuels can be imported at a special exchange rate of “at least N600 per Dollar for the next three months while waiting for the promised reactivation of our refineries.”

He spoke at the National Executive Council (NEC) meeting of the Association on Thursday in Abuja, an event which attracted leaders of many oil and gas sector unions and associations.

The oil industry players noted that while they applauded the removal of fuel subsidy, “we warned and advised that right steps be taken to cushion its effects for the survival of citizensʼ businesses and precarious development.

“Similarly, Depot Owners are so terribly affected by the increasing cost of the crude and exchange rate to the extent that many Depots are practically deserted as their owners are unable to secure Bank loans to fund their business due to high interest rates.

“Banks are not willing to guarantee funds release to stakeholders as a result of the difficulty, instability and galloping rates of foreign exchange and high cost of the Dollar. Many Depots are presently dried up or out of stock, and this is no gainsaying as it is evidently verifiable.

“Worst hit are Filling Stations whose owners find it extremely difficult to secure funds to procure products for their retail outlets and both the Independent and Major Marketers are so terribly
affected that as at today, filling stations are shutting down in great numbers on a daily basis
and dealers are going out of business with many more on the verge of bankruptcy because of their inability to secure funds to facilitate orders for their stations”, the NOGASA President said.

The oil marketers then called on the federal government to urgently come to their rescue to avert impending colossal collapse of the oil industry.

“Government must therefore urgently come to the aid of the Industry as quickly as possible to save it from an impending colossal collapse which will in turn result in a more devastating blow to the economy at large.

“Indeed, the success of this Government highly depends on the survival of the Oil Industry, whose critical stakeholders are presently most negatively affected.

“We wish to once again and most sincerely reiterate that the only realistic option out of this dire situation for now is for Government to urgently consider to expedite the provision of an “Emergency Palliative Measures” for marketers such that fuels can be imported at the rate of at least N600 per Dollar for the next three months while waiting for the promised
reactivation of our refineries.

“This will go a long way in cushioning the harsh effect of the high cost of importation and equally bring about reasonable reliefs to the business and cost of living
generally.

“Lastly, to Nigerians the state of our roads continues to make a very strong statement against Government’s responsibility for infrastructural provision and maintenance. Petroleum products distribution is, and has been severely hampered by unmotorable roads.

“Therefore road networks and maintenance need to be positively impactful. This development is already a
waiting threat to the laudable CNG driven transportation innovation of Mr. President and this time, conscious and practical solutions are therefore suggested to engage the local workforce
to speedily refurbish and/or resuscitate bad roads across the country.

“This will also create thousands of jobs for jobless youths and other restive people in our communities; which will
definitely be a plus for this administration. These suggestions are highly important as effective products distribution requires effective provision of roads provision and management”, the oil marketers said.

They called on the Government to “do everything to ensure the removal of everything that has to do with challenges in the areas of importation as well as clearing in NIMASA, NPA, DPR and other Agencies that are involved with Dollar transactions for Marketers.

“The bottlenecks are simply
killing us. Our businesses are dying and the system is not helping us at all. An urgent action is highly required to save our industry from total collapse”, NOGASA President said.

The NOGASA NEC Meeting was attended by top representatives of Independent Petroleum Marketers Association of Nigeria (IPMAN), Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and Petroleum Tanker Drivers Association among others.

They all noted that when NOGASA speaks, it is speaking on their behalf as they are all in one accord as oil marketers.

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