Thoughts on Fuel Crisis in Nigeria

The explanation given by the GMD/ HMP addresses only the problem of fuel scarcity and its attendant queues. It is very loudly silent on the most critical issue, which is the production of petrol from the NNPC refineries !

 The NNPC refineries were the only source of petroleum products in 1990-91 when this country was self sufficient in the supply of petroleum products.

All the attempts to wriggle out of this self created problem by avoiding it, or pretending that the problem does not exist or that it will go away when this bout of shortage is "solved", through massive and very expensive imports and depleting of Nigeria's forex will lead the country nowhere !

We must solve this recurring problem of supply of petroleum products by producing enough to meet local demand from Nigerian refineries (both the existing and any new ones). There is no other permanent solution!

The logistics costs of importation constitute a continuous drain in our forex. The continuous devaluation of the Naira relative to foreign currencies especially the US Dollar, is a direct result of importation of products, which we could otherwise produce locally ! This is due to the exorbitant amounts of forex expended on the importation.

All the efforts and imaginative ways we use to find forex to import petroleum products will become UNSUSTAINABLE, sooner than later when we are forced to officially devalue the Naira ! A word is enough for the wise !
Alexander Ogedegbe.

Ibe Kachikwu, minister of state for petroleum resources and group managing director of the Nigerian National Petroleum Corporation (NNPC), has made a podcast to the…



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