Oil marketers, represented by the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), have raised their voices in an urgent appeal to the Federal government.
Their plea aims to secure a swift palliative measure, preventing a potential collapse of the oil sector.
Critical Role of the Oil Industry
NOGASA emphasized the vital role played by the oil industry in the country and argued that the success of the government is closely linked to the sector’s survival.
Presently, they noted, critical stakeholders within the industry are facing significant challenges.
Acknowledgment of Existing Palliatives
During its National Executive Meeting (NEC) held on Thursday, NOGASA acknowledged the Federal government’s provision of palliatives to citizens, designed to mitigate the impact of fuel subsidy removal.
However, they highlighted the necessity for similar support to oil marketers facing the repercussions of subsidy removal in the sector.
Specific Palliative Request
Benneth Korie, the National President of NOGASA, made a specific request to the government.
He urged the Federal government to provide palliatives to marketers by setting the exchange rate at N600 per dollar for the next three months.
The reasoning behind this request stems from the current volatility in the foreign exchange market, which has led to the closure of numerous petrol stations and the depletion of depot supplies.
Importance of the Proposed Palliative
Korie further elaborated on how this proposed palliative measure could benefit marketers.
He emphasized that it would enable the importation of fuels at a more favorable exchange rate, thereby mitigating the harsh effects of high importation costs.
Ultimately, this move would bring relief to businesses and positively impact the overall cost of living.
This plea from NOGASA underscores the challenges faced by various stakeholders in the oil sector following the removal of fuel subsidies.
It highlights the interconnectedness of economic sectors and the need for timely government intervention to maintain stability and prevent potential collapses.
The government’s response to this appeal will likely have a significant impact on the future of the Nigerian oil industry.
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