Naira depreciation, others destabilize downstream oil marketers

THE Major Energy Marketers Association of Nigeria, MEMAN, yesterday, disclosed that the depreciation of the Naira and other issues have scuttled operations and investment in the downstream sector.

Executive Secretary/CEO of MEMAN, Clement Isong, who disclosed this at a media forum in Lagos, said that the uncertainty in the foreign exchange (forex) market has hindered members from effective marketing of petrol nationwide.

He added that though marketers receive products form Nigerian National Petroleum Company Limited, NNPCL retail, payments on ship-to-ship offload is done in USDollars, which push up cost each time exchange rate rises.

“We are presently concerned about sustainability, efficiencies and affordability of energy for Nigerians and we are encouraging shift to energy transition specifically into gas space,”  he stated.

According to him, although the Federal Government has been faithful in its avowed intervention process since it exited the petrol subsidy regime, yet the dollarization policy is weakening the industry and discouraging investment, which he blamed mostly on fluctuating dollar movement and unpredictability of the rate.

Also speaking, Adelanke Bayo-Adepoju, Gas and Renewable Energy Specialist at MEMAN, analyzed the benefits of shifting focus to Compressed Natural Gas, CNG, as alternative to petrol.

She said concerted efforts have been made to convert about 1 million vehicles to run on the fuel by 2027, with the establishment of over 1,000 conversation workshops across the country.

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