Still bleeding from the effect of the removal of fuel subsidy, marketers under the auspices of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), have urged the Federal Government to provide its members a N100 billion grant in order to prevent the imminent closure of about 10,000 fuel retail outlets.
In a position paper to the Federal Government by PETROAN President, Mr. Billy Harry, National Secretary, Mr. Adedibu Aderibigbe and National PRO, Mr. Joseph Obele, the association said the high cost of borrowing from banks is injurious to their businesses.
They explained that since the removal of fuel subsidy, members of PETROAN have been unable to buy petroleum products due to high bank interest rates which range between 38 to 40 per cent.
The association maintained that for the cost of petroleum products to be affordable, the cost of borrowing must equally be moderate, and that the entire costs end up adding to the retail pump price of the product.
The body urged the Federal Government to ensure that the Africa Energy Bank (AEB) is domesticated in Nigeria to provide downstream sector players access to cheaper funds at no more than nine per cent interest.
“N100 billion should be deposited at the AEB as operation capital repayable over a given period of time. This is not free money of any sort but to help support us so that we can continue to be in business while supporting the growth of the economy.
“If we are accessing these funds at a single digit interest rate of nine per cent, the cost of petroleum product at the pumps will definitely go down”, PETROAN said.
On the upstream sector, the organisation posited that Nigeria’s oil sector witnessed a remarkable resurgence in 2024, with daily crude oil production reaching an impressive 1.8 million barrels per day.
This feat, they said, marks a 15-year record, showcasing the country’s determination to reclaim its position as a leading oil producer.
“The significant increase in oil production is a testament to the government’s efforts to revamp the sector. This achievement is expected to have a positive impact on the country’s economy, generating more revenue and creating employment opportunities.
“The oil sector’s growth in 2024 is a promising sign for Nigeria’s economic development in the years to come. As the country looks to the future, it is clear that the oil sector will continue to play a vital role in Nigeria’s economic growth.
“We recommend that crude oil be made available for local refineries which will in turn have a positive impact on the country’s economy and energy security. By prioritising local refineries’ access to crude oil, Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security”, the organisation said.
It called on the government to address cross-border smuggling of petroleum products by collaborating with neighbouring countries to strengthen border security and also utilise digital tracking systems to monitor petroleum products from refineries to retail outlets.
