Nigeria’s Fuel Crisis: PENGASSAN Blames Inefficient Distribution Channels
By The persistent fuel queues across Nigeria are largely due to weaknesses in the country’s distribution chain within the downstream sector of the oil and gas industry, according to Comrade Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). Speaking on Thursday at the 3rd edition of the PENGASSAN Energy and Labour Summit in Abuja, Osifo emphasized the need for immediate reforms to tackle this ongoing issue.
Osifo criticized Nigeria’s reliance on truck-based distribution, pointing out that the current system is outdated and inadequate for the country’s large population and expansive geography. “There is no country in the world as big as Nigeria, with our population, that relies on a single point of product importation and uses trucks to distribute across the nation,” he stated.
As both PENGASSAN President and President of the Trade Union Congress (TUC), Osifo highlighted the vulnerabilities of this distribution method, noting that bad roads, flooding, and other disruptions frequently lead to fuel shortages. He stressed the urgency of developing a more efficient and resilient value chain to prevent recurring fuel crises.
Osifo also addressed other pressing issues within the oil and gas industry, including the high cost of production in Nigeria, which is 15 to 20 percent higher than in other parts of the world. He attributed this disparity in part to the heavy security burden on oil and gas companies and called on the government to assume responsibility for security. This shift, he argued, would significantly reduce production costs.
Furthermore, Osifo urged the government to enforce stricter laws and harsher penalties against those involved in oil theft, emphasizing the need for greater integrity within the industry. “Our distribution chain is weak, and that is why we continue to see queues at fuel stations,” he said. “If we do not strengthen this area, we will continue to face these challenges. The value chain must be developed and enhanced to ensure a stable and reliable fuel supply.”
In conclusion, Osifo’s remarks at the summit underscored the critical need for comprehensive reforms in Nigeria’s oil and gas sector to address the underlying causes of fuel scarcity and improve the industry’s overall efficiency and integrity.