Lingering fuel crisis worsening capacity utilisation, productivity, says NECA     

• Oyerinde: Scarcity despite subsidy removal defies logic
• Marketers upbeat, assure situation will ease this week
• NANS suspends protest, opts for dialogue over fuel, electricity crisis

Petrol supply challenges facing the country entered its third week yesterday with marketers remaining upbeat about the situation following the release of more volumes by the Nigerian National Petroleum Company (NNPC) Limited.

Specifically, the Nigeria Employers’ Consultative Association (NECA) noted that due to the epileptic nature of electricity supply from the grid, most businesses, particularly the Small and Medium Enterprise (SMEs) depend on self-electricity generation by utilising fuel, adding that fuel scarcity in the country has further worsened idle capacities as capacity utilisation continued to decline among businesses.

He lamented that idle capacity would eventually trigger low production and profit, leading to retrenchment/layoff of workers.

Amid dwindling productivity and economic activities, NECA expressed concern at the persistent queues for petrol at most filling stations across the country.

Director-General of NECA, Adewale-Smatt Oyerinde, lamented that like a sore that has refused to heal, the recurrent issue of fuel scarcity has reared up its ugly head again, notwithstanding the removal of fuel subsidy.

In a statement, yesterday, he said the fuel subsidy removal among other things was supposed to liberalise the market and ensure the free flow of the product. He said the ongoing scarcity, with attendant loss of productive man hours as a result of endless hours spent at filling stations, defies logic.

He lamented that the ongoing disruption of businesses across diverse sectors, and escalating transportation and logistical bottlenecks have progressively led to increased operational costs.

Notwithstanding the recent assessments by NNPCL and petroleum stakeholders, which identified panic buying and unethical practices as primary contributors to the ongoing fuel crisis, the Director-General emphasised the urgent need for coordinated action, proposing strategic interventions to address the fuel scarcity and fortify organisational resilience.

He called for heightened collaboration among the NNPC, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), petroleum marketers and other stakeholders to optimise fuel distribution and mitigate supply chain disruptions.

Oyerinde also pointed out the need to quickly lock on to measures that will sustain the availability of the products in the medium and long runs, such as strong encouragement to the Dangote Refinery and other private sector refineries, while resuscitating the existing national ones.

Speaking on the latest situation, the Public Relations Officer, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said it would take a few more days for supply to normalise, adding that independent marketers who had not received any product for weeks were now beginning to load, especially at the coastal depots in Calabar, Port Harcourt and Warri.

He disclosed that marketers in System 2A and System B were expected to load the product in the coming days.

According to him, “anytime there is scarcity in Lagos, there will be scarcity everywhere because it is the landing port for all imported petroleum products and NNPC will use their daughter vessels to distribute products to the coastal areas.

“Yes, the product has come and it is being distributed but as I said earlier, since our pipelines are not working, the product will be distributed through daughter vessels to coastal depots where marketers can pick from. Trucks are made to travel to between 500km to 1,000km to deliver products.

Adewale-Smatt Oyerinde

“It is a gradual process and Nigerians should be patient. Port Harcourt has received over five million litres of petrol which will water the area. I am aware that Warri and Calabar are also loading. So, in a few days, everything will normalise. I believe that they are giving more priority to Abuja and the surrounding areas to clear the queues. If you see Abuja, you will see improvement. There is fuel, it is just that it is not sufficient to return the supply to a normal period.

Meanwhile, the National Association of Nigerian Students (NANS) has suspended its planned nationwide protest scheduled for Tuesday, May 7, over the current fuel scarcity and poor electricity supply in the country.
The students’ body said it shelved the protest and opted for dialogue with relevant government authorities, which had appealed for roundtable discussion rather than being confrontational in addressing the two subjects of concerns raised in the threat.

The association announced the suspension of the protest in a statement on Sunday jointly signed by the senate president of NANS, Akinteye Afeez; and five zonal coordinators of NANS, namely: Bilal Lawal Kurfi (Zone A, Northwest), Daniel Friday Egga (Zone C, North Central), Alao John (Zone D, Southwest), Chidi Nzekwe (Zone F, Southeast) and Bappa Hassan Adam (Zone E, Northeast).

In its earlier threat, NANS called for the immediate sack of the Minister of Power, Adebayo Adelabu, and the group managing director of NNPCL, Mele Kyari, blaming the duo for the untold hardship Nigerians are going through due to the current petroleum and power supply crisis and identified some major highways across the six geo-political zones of the country where the planned protest will be simultaneously carried out.

The association however on Sunday gave reasons for the suspension, saying “government has reached out to us to initiate dialogue and has provided assurances that measures will be taken to end the fuel scarcity crisis and also promised improvement in electricity supply before the end of next week.

“So, while we remain vigilant in our pursuit of accountability and good governance, we believe that engaging in dialogue presents an opportunity to address our concerns through constructive means.

“As student leaders, our agitations are not fueled by personal animosity towards both the NNPCL GCEO and the Minister of Power, but rather by our responsibility as a pressure group to hold them accountable for their positions.

“We recognise the importance of keeping government officials accountable and ensuring transparency in the management of our nation’s resources. So, our decision to suspend mobilisation towards a national protest till further notice comes as a result of our collective recognition that lasting solutions often emerge from constructive dialogue and negotiation.”