The National Oil and Gas Suppliers Association of Nigeria (NOGASA) has called on the government to follow through with its effort to ensure the sales of crude oil to refineries in Naira, stating that this is critical to address the current scarcity of Premium Motor Spirit (petrol) in the country.
Benneth Korie, the national president of NOGASA stated this during a press briefing in Abuja on Wednesday. According to him, there was a need to foster a competitive environment to ensure the healthy circulation of petroleum products, commending Aliko Dangote for his monumental contribution to the industry through the establishment of the largest refinery in Nigeria.
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He noted that the coming on board of the refinery promises substantial benefits, including enhanced supply, increased competition, and a bolstering of the national economy and currency.
“We 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.
“To ensure a balanced distribution, I urge that Dangote’s refined products be made available to a broader range of stakeholders, including Nigerian National Petroleum Company Trading, NNPC Retail, Depot and Petroleum Products Marketers Association of Nigeria, Major Energies Marketers Association of Nigeria, Independent Petroleum Marketers Association of Nigeria, The Petroleum Products Retail Outlets Owners Association of Nigeria, and Natural Oil and Gas Suppliers Association of Nigeria. This inclusivity will facilitate sustainable and widespread distribution across the country.
“Furthermore, the Federal Government should expedite the commencement of the Port Harcourt refinery slated for September. This will help alleviate current shortages and ensure that products are distributed among the same stakeholders,” he said.
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He added that the prices of Automated Gas Oil (AGO), with Dangote’s refinery production and crude oil transactions in Naira, are expected to reduce adding that the 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.
Speaking on the issue of smuggling, he said there was a need to redesign distribution channels to prevent illegal exportation of petroleum products, stressing the need for strengthened security agencies, especially at border points.
He decried the impact of excessive and double taxation on the businesses in the country stressing the need for government intervention to foster a more favourable business environment.
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“Multiple taxation remains a critical concern, and excessive and double taxation by various government levels must be addressed to create a fairer business environment.
“Turning to inflation and economic stability, agriculture must be prioritized. To address public apprehension over rising costs, the government should make farming more attractive and profitable by subsidizing 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 prioritization of emergency repairs,” he said.
