- Festus Osifo attributes Nigeria’s persistent fuel queues to weak distribution infrastructure, emphasizing the need for urgent reforms in the sector
- He highlights that high local production costs and security burdens on oil companies further exacerbate fuel shortages across the country
Mr. Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has highlighted the weak and outdated distribution infrastructure as the primary cause of the persistent fuel queues at filling stations across Nigeria. Speaking at the 2024 PENGASSAN Energy and Labour Summit (PEALS 2024) in Abuja on Thursday, Osifo explained that the distribution chain in Nigeria’s downstream oil and gas sector is inadequate for the country’s large population.
He pointed out that relying on a single point of product importation and using trucks for nationwide distribution is not a viable solution for a country as large as Nigeria. This outdated distribution system leads to recurring fuel shortages, with station queues being a common sight.
Osifo also attributed the fuel shortages to issues such as bad roads and flooding, which disrupt the supply chain and exacerbate the problem. He emphasized urgent reforms needed to modernize and strengthen Nigeria’s fuel distribution system to ensure a more efficient and reliable supply.
In addition to the distribution challenges, Osifo mentioned another significant issue: the high cost of local fuel production, which is 15 to 20 percent higher than in other parts of the world. He attributed this to the security burdens placed on oil and gas companies, suggesting that the government should take over these security responsibilities to reduce production costs.
Osifo also called on the government to enforce stricter laws and sanctions against those involved in oil theft, further hampers the sector’s efficiency. He warned that Nigeria would continue to experience recurring fuel shortages and the associated queues at filling stations without these improvements.
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