Recently, the national grid collapsed and threw Nigerians into darkness amid scarcity of petroleum products. ONYEKORMAKA ASABOR presents solutions proffered by senior oil and gas workers
The Petroleum and Natural Gas Senior Staff Association of Nigeria held a world press briefing, last Tuesday, on various aspects of the economy, with special focus on the country’s energy sector in the past few months. The event was convened by the executive led by Festus Osifo (president) and Lumumba Okugbawa (general secretary).
Issues
Discussions at the conference dwelt on salient national challenges that cut across petroleum products availability, crude oil theft and pipeline vandalism, electricity, unemployment, security and the economy in general.
Osifo tried to hazard the cause of difficulties his constituency was contending with in its task to move the country’s economy forward.
He said, “Over the years, we have been at the forefront of ensuring that petroleum products are available at affordable prices. In the last few months, we have watched with keen interest the endless queues that Nigerians face at petrol stations daily. This was initially attributed to the low quality of Premium Motor Spirit imported into the country, later to the hoarding of products by marketers and lastly to the refusal of tanker drivers to transport products to different parts of the country.”
While empathising with the masses, he urged the Ministry of Petroleum Resources, Nigeria Mid and Downstream Petroleum Regulation Authority, Nigeran National Petroleum Company Limited, Major Oil Marketers Association of Nigeria, Depot and Petroleum Marketers Association of Nigeria, Independent Petroleum Marketers Association of Nigeria and other stakeholders in the supply and distribution value chain of the industry to redouble their efforts in endng the incessant queues that had, in recent times, been disrupting economic activities, while ensuring that citizens pay the approved price of PMS in all parts of the country.
As gathered by Financial Street, the leadership of PENGASSAN was worried about the prevailing prices of kerosene, cooking gas, aviation fuel and diesel, which are relatively on the high side.
The PENGASSAN president explained that deregulation of the petroleum products did not give marketers licence to exploit Nigerians, adding that the regulator of the downstream sector “must ensure that Nigerians are not exploited.”
According to him, though the increase in the price of crude oil in the international market is partly responsible for the surge, findings by the association reveals that non-availability of foreign exchange at the official Central Bank of Nigeria rate to marketers is largely responsible for the increase, as they source FX from the parallel market.
The unwholesome scenario, he added, is worsened by the activities of unscrupulous marketers that are bent on milking Nigerians dry.
Way out
Against the foregoing observations, Osifo urged the Federal Government to remove all forms of taxes and levies from the importation of petroleum products. To this end, he said the Nigeria Liquefied Natural Gas and other gas producers should be mandated to focus more on domestic gas production, and that efforts should be intensified to fast-track the rehabilitation of the country’s four refineries, to guarantee energy security.
On the short term, he urged government to make FX available to the importers at the official rate.
He, however, warned that the abnormality and distortion could drive the country into another round of recession and nail the coffin of the already battered economy.
Also discussed at the conference were issues that border on crude oil theft, which Osifo said had exacerbated in recent times.
His words, “This has made Nigeria lose revenue from the current high price of crude oil in the international market. We produce an average of 1.2 million to 1.3 million barrels of crude oil daily, from two million barrels.
From October 2021 to February 2022, between 90 and 99 per cent of crude oil pumped into the Trans National Pipeline by operators was vandalised, he said, adding, “Reconciliation/fiscalisation at Bonny Terminal shows that between five per cent and 10 per cent of crude oil metered from the operators gets to the terminal”
In a similar vein, he urged the government to address the issue of electricity, as it is worsening the economy, particularly when seen from the perspective of unemployment and insecurity.
PENGASSAN charged the government to take decisive action on the issues, and that its leadership would continue to hold government accountable in all fronts as nation building is a collective responsibility.
The time to act is now, he stressed.
