Fuel scarcity in Nigeria may persist due to several factors including non-functional refineries, instability in the naira-to-dollar exchange rate, overreliance on the importation of refined products, poor road infrastructure, dollarization of the economy, and smuggling activities.
This assessment comes from Mr. Salimon Oladiti, a National Trustee of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).
Oladiti emphasized the need for Nigeria’s refineries to operate at full capacity, as this would significantly reduce the cost of fuel.
He stated that the current practice of importing refined products is not sustainable and that local production through functional refineries is crucial.
Regarding subsidy removal, Oladiti noted that while it may be necessary, a strong naira is essential to withstand price fluctuations in the international oil market.
He also highlighted the issue of smuggling, where some individuals profit by taking fuel products out of the country, despite government subsidies.
Oladiti called for better infrastructure, especially in the form of well-maintained roads, to facilitate the movement of oil products across the country.
He also mentioned that Dangote’s refinery, while significant, should not be solely relied upon for a solution. Instead, a strong naira that can compete internationally is essential to address the root causes of fuel scarcity and high prices.
In conclusion, Oladiti stressed the importance of addressing the challenges faced by Nigeria’s fuel sector, including the need for a strong naira and measures to discourage smuggling and illegal export of fuel products.
Source: Tribune Online