Oil and gas dealers across the country have voiced concerns over the challenging operating conditions in the downstream oil sector, highlighting the collapse of approximately 70% of businesses within the industry.
The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), representing over 200 oil and gas suppliers, issued a statement following its executive committee meeting in Abuja on Wednesday.
NOGASA, a prominent association advocating for the interests of the oil and gas supply industry, emphasized the need for urgent government intervention to avert a potential crisis. President of NOGASA, Benneth Korie, conveyed the resolutions of the association’s members, stressing the necessity for immediate action to address the prevailing challenges.
Korie highlighted the critical issue of foreign exchange rate instability, proposing a fixed exchange rate of N750/$ to facilitate the resumption of refined product output by local refineries. He underscored the financial strain faced by oil marketers, citing the exorbitant costs of operations and high bank interest rates as significant impediments to business viability.
The association expressed grave concerns over the dire state of the downstream oil sector, with a substantial percentage of oil traders forced out of business due to the unfavourable operating environment. Korie warned that if no remedial measures are taken by the end of the month, NOGASA members, representing a significant portion of oil suppliers, may be compelled to suspend services.
The looming threat of a service shutdown underscores the urgency of addressing the systemic challenges plaguing the oil and gas industry. Amidst the backdrop of a forex crisis and pervasive economic challenges, stakeholders are calling for swift government action to stabilize the sector and mitigate adverse impacts on businesses and consumers alike.
With expectations high for the release of refined petroleum products from major refineries such as the Dangote and Port Harcourt refineries, stakeholders anticipate a potential alleviation of fuel supply shortages nationwide. However, the resolution of broader economic issues, including the forex crisis and inflation, remains paramount to restoring stability and fostering sustainable growth in the oil and gas sector.
