Fuel scarcity: Addressing Nigeria's logistics constraints

Fuel queues in major Nigerian cities like Lagos are gradually easing off, but the country still faces challenges with fuel scarcity. Major oil marketers are demanding increased supply from the Nigerian National Petroleum Company (NNPC) as depot stocks dwindle. Temitope Kolade, Senior Manager of the Oil, Gas, and Power Unit at Andersen Nigeria, sheds light on the logistics issues contributing to the current fuel scarcity situation. Kolade highlights the supply chain challenges and the impact of NNPC's monopoly on fuel importation. With NNPC as the sole importer of Premium Motor Spirit (PMS) in Nigeria, any shortages or disruptions in supply from the state-owned company have ripple effects across the market. The current regulated pricing system adds another layer of complexity to the situation, leading to speculations and market uncertainties. Kolade points out that the dormant import licenses of other players in the industry hinder the development of a truly deregulated market. While the Petroleum Industry Act was expected to address some of these issues, its full implementation and the realization of a competitive market remain elusive. The interview also touches on the potential role of the Dangote refinery and the need for a more transparent and sustainable fuel supply system in Nigeria. As stakeholders continue to grapple with fuel scarcity, addressing the logistical bottlenecks and fostering a more competitive market environment are crucial steps towards ensuring a stable and reliable fuel supply for the country.