AFRICA

Oil Marketers Endorse Naira-Based Crude Sales, Call for Border Security Overhaul To End Smuggling

Oil and gas marketers under the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), on Wednesday backed the Bola Tinubu-led administration on its directive to the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil in naira to Nigerian refineries.

Speaking during a press briefing in Abuja, National President of the Group, Mr Benneth Korie, also urged the federal government to put a stop to the smuggling of petroleum products across Nigerian borders.

Arguing that smuggling was not enough reason to raise the local price of the products, Korie stressed that if it means replacing the customs officials currently manning the borders, the government must do it to end the menace.

According to him, these issues were central to the success of actions at ensuring adequate access to and availability of refined petroleum products nationwide.

Korie argued that addressing the challenges of smuggling, enhancing Nigeria’s agricultural sector and improving the country’s transportation network, and tackling multiple taxation will help rebuild the economy.

“Firstly, regarding refined products, we must foster a competitive environment to ensure the healthy circulation of petroleum products, and to this end I commend Aliko Dangote for his monumental contribution to our industry through the establishment of the largest refinery in Nigeria.

“This development promises substantial benefits, including enhanced supply, increased competition, and a bolstering of our national economy and currency.

“To ensure a balanced distribution, I urge that Dangote’s refined products be made available to a broader range of stakeholders, including NNPC Trading, NNPC Retail, DAPPMAN, Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), NOGASA and others.

“ This inclusivity will facilitate sustainable and widespread distribution across the country,” the NOGASA boss added.

Furthermore, Korie argued that the federal government should expedite the commencement of the Port Harcourt refinery slated for September, explaining that this will help alleviate current shortages and ensure that products are distributed among the same stakeholders.

“I also want to express our support for Mr. President’s directive to sell crude oil in Naira. We hope that our refineries will reciprocate by selling refined products in Naira, thus stabilising the market.

“On the issue of smuggling, we need to redesign distribution channels to prevent illegal exportation of petroleum products. Strengthening our security agencies, especially at border points, with necessary equipment and support is crucial. Additionally, providing logistics and drones for surveillance will help combat smuggling and theft effectively,” Korie said.

He argued that being a businessman, Aliko Dangote cannot be forced to sell at lower market prices, stressing that with proper arrangement, whatever the government is doing to keep prices down can also be implemented with the owners of the 650,000 bpd facility.

On inflation and economic stability, he stated that agriculture must be prioritised, noting that to address public apprehension over rising costs, the government should make farming more attractive and profitable by subsidising agricultural inputs and equipment.

“Reliance on unsustainable palliatives is not the solution. Instead, increasing budget allocations for agriculture and encouraging cluster farming will significantly boost food production.

“Extension workers should also be deployed to educate farmers on modern techniques such as irrigation and fumigation, etc.

“It is necessary to reiterate that improving our transportation network is also very essential. Indeed, expanding and revamping railways, especially for bulk cargo, will enhance logistics, and adequate attention must be given to road networks, with prompt payments to contractors and prioritisation of emergency repairs.

“Multiple taxation remains a critical concern, and excessive and double taxation by various government levels must be addressed to create a fairer business environment,” he maintained.

Regarding the prices of Automated Gas Oil (AGO) or diesel, with Dangote’s refinery production and crude oil transactions in naira, NOGASA said that it expects a reduction in AGO prices.

It urged the NNPC to leverage its shares in Dangote’s refinery to drive down these costs, which will, in turn, lower transportation expenses and reduce market prices.

The organisation acknowledged the efforts of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in regulating the industry, urging the organisation to ensure that products are available to marketers at fair prices to prevent profiteering.

“Government should also facilitate the availability of Compressed Natural Gas (CNG) kits and conversion centres. Marketers are ready to offer their stations for these purposes, which will reduce reliance on petrol and diesel

“Our joint efforts and timely actions in these areas will pave the way for a more stable and prosperous industry,” Korie pointed out.

According to him, what is important to the organisation is to have availability of petroleum products in Nigeria, urging the government to ensure that crude oil is made available not only to the big refineries but also to modular refineries.

 Korie argued that it was time for the government to stop the growing fuel queues and  make products available.

“We have crude oil in Nigeria and we have refineries and we are suffering, so it’s time for us to say goodbye to fuel scarcity and I am sure that Dangote and other refineries will keep their promises by September.

 “From September, that is next month, Nigerians will experience what they call free flow of petroleum product all over the country, I am 100 per cent sure if this is resolved from now to Friday, Nigerians will enjoy petroleum products and we want the product to be cheap for Nigerians.

“The issue of telling Nigerians that the price will not be cheap because of smuggling should not be a problem. We have the best security in this country. If they are serious, they can go to the border and stay, there’s nothing wrong in changing or reshuffling them.

“That should not be an excuse for not selling petroleum products in Nigeria for cheaper prices. We should not be looking outside for what they sell, we should be looking at what we sell to Nigerians,” he argued.

Korie further maintained that governments should begin the repair of major roads in the country, explaining that once that is done, and the price of diesel is lowered, then the extra cost associated with transportation of products by road will be eliminated.

Emmanuel Addeh and Aminat Hassan

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