The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), has appealed to the managements of the Dangote Refinery and Petrochemicals, and other modular refineries in the country to sell their refined products to oil marketers in Naira, just as they will be getting the crude in Naira.
Recall that President Bola Tinubu recently directed the Nigerian National Petroleum Company Limited (NNPC Ltd.) to sell crude oil to Dangote and other modular refineries in the country in Naira.
NOGASA National President, Chief Benneth Korie made this appeal while briefing journalists on Wednesday in Abuja.
“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 stabilizing the market”, he said.
Chief Korie also submitted that in order to ensure a balanced distribution, the Dangote’s refined products should be made available to a broader range of stakeholders, including NNPC Trading, NNPC Retail, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), and NOGASA.
This inclusivity, according to him, would facilitate sustainable and widespread distribution across the country.
He urged the Federal Government to expedite the commencement of the Port Harcourt refinery slated for September, so as to alleviate the current shortages and ensure that the products are distributed among the same stakeholders.
Korie advocated the reduction in the price of Automative Gas Oil (AGO) Diesel, so as to lower transportation costs and reduce the price of petroleum products.
“Regarding the prices of AGO, with Dangote’s refinery production and crude oil transactions in Naira, we expect a reduction in AGO prices. NNPC should leverage its shares in Dangote’s refinery to drive down these costs, which will, in turn, lower transportation expenses and reduce market prices”, he said.
On issue of smuggling, he said, there was the need to redesign distribution channels to prevent illegal exportation of petroleum products.
He added: “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”.
While disclosing that road constitute 45 percent of the delay in the delivery of the petroleum products, the NOGASA President urged the government to improve on the transportation network across the country.
“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 prioritization of emergency repairs”, he added.
He urged the federal, states and local governments to discourage the multiple taxation on the nation’s highways.
“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 said.
On inflation, the NOGASA boss urged the government at all levels to prioritise agriculture, adding that to address public apprehension over rising costs, the government should make farming more attractive and profitable by subsidizing agricultural inputs and equipment.
He noted that reliance on unsustainable palliatives is not the solution, instead, government should increase budget allocations for agriculture and encourage cluster farming to significantly boost food production.
“Extension workers should also be deployed to educate farmers on modern techniques such as irrigation and fumigation, etc”, he said.
While acknowledging the efforts of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in regulating the industry, Chief Korie urged them to ensure that products are available to marketers at fair prices to prevent profiteering.
He said, the government should also facilitate the availability of the Compressed Natural Gas (CNG) kits and conversion centers, adding that Marketers are ready to offer their stations for these purposes, which would reduce reliance on PMS and AGO.
