BRIEF NOTE
✔ Nigerian oil and gas dealers, under the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), have declared a harsh operating environment in the downstream oil sector has led to the collapse of about 70% of businesses.
✔ The association’s over 200 members may withdraw their services from next month if the government fails to act quickly.
✔ The government should peg the foreign exchange rate at N750/$ to enable refineries to start pumping out refined products.
✔ High bank interest rates and the difficulty of funding operations have led to the shutdown of 70% of downstream oil sector businesses.
✔ Nigerians are eagerly awaiting the release of refined petroleum products from the Dangote and Port Harcourt refineries, which will positively impact the supply of fuel nationwide.
PUNCH
Oil and gas dealers in the country have declared that the harsh operating environment in the downstream oil sector has led to the collapse of about 70 per cent of businesses in the industry, stressing that the over 200 members of NOGASA may withdraw their services from next month if the government fails to act fast.
The oil and gas dealers under the aegis of the Natural Oil and Gas Suppliers Association of Nigeria spoke after a resolution of its executive committee meeting in Abuja on Wednesday.
The President, NOGASA, Benneth Korie, who conveyed the resolutions of members of the association after their meeting, stated that the government should peg the foreign exchange rate at N750/$ in order to enable refineries to start pumping out refined products.
Speaking on why the over 200 members of NOGASA could be forced to withdraw their services, Korie said it was becoming increasingly difficult for oil marketers to fund their operations, a development that led to the shutdown of 70 per cent downstream oil sector businesses.
