ENUGU, Nigeria (VOICE OF NAIJA)- Petroleum product marketers have warned about the closure of retail outlets, attributing this crisis to the increasing cost of running the business.
During the National Executive Council gathering of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) in Abuja, concerned marketers expressed their disapproval of President Bola Tinubu’s approach to removing petrol subsidies, emphasizing the absence of essential preparatory measures.
Marketers firmly asserted that the nation’s refineries should have been functioning and foreign exchange issues resolved before the subsidy removal.
They also raised concerns about the Federal Government of Nigeria’s inability to curb the illicit trading of dollars within the country.
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NOGASA President, Mr Benneth Korie, issued a stern caution during the meeting, emphasizing the immense pressure facing the downstream sector, resulting in the shutdown of stations due to challenging operational conditions.
He stated: “Depot owners are so terribly affected by the increasing cost of the crude and exchange rate to the extent that many depots are practically deserted as their owners are unable to secure bank loans to fund their business due to high-interest rates.
“Banks are not willing to guarantee funds release to stakeholders as a result of the difficulty, instability and galloping foreign exchange rate. Many depots are presently dried up or out of stock.
“Worst hit are filling stations whose owners find it extremely difficult to secure funds to procure products for their retail outlets, and both the independent and major marketers are so terribly affected that as at today, filling stations are shutting down in great numbers on a daily basis and dealers are going out of business with many more on the verge of bankruptcy because of their inability to secure funds to facilitate orders for their stations”.