The Nigerian Employers’ Consultative Association (NECA) has called for urgent coordinated action and strategic interventions to effectively address the fuel scarcity presently being faced by Nigerians.
The association, in a statement issued on Sunday and signed by its Director General, Mr. Adewale-Smart Oyerinde, expressed concern at the persistent queues for petrol at most filling stations in the country, amid dwindling productivity and economic activities, despite the removal of subsidy for fuel.
The association noted that the ongoing disruption of businesses as a result of the scarcity has led to escalating transportation and logistics bottlenecks, thereby resulting in increased operational costs.
“Like a sore that has refused to heal, the recurrent issue of fuel scarcity has reared up its ugly head again, notwithstanding the removal of fuel subsidy.
“The fuel subsidy removal, among other things, was supposed to liberalise the market and ensure the free flow of the product. The ongoing scarcity, with attendant loss of productive man hours as a result of endless hours spent at filling stations, defies logic,” the association stated.
According to NECA, instead of attributing the development to panic buying and unethical practices, the Nigerian National Petroleum Corporation (NNPC) must heighten its collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), petroleum marketers, and other stakeholders to optimise fuel distribution and mitigate supply chain disruptions.
The association also pointed out the need to quickly come up with measures that will sustain the availability of the products in the medium and long term, such as giving strong encouragement to the Dangote Refinery and other private sector refineries while resuscitating the existing ones in the country.
NECA noted that since small and medium enterprises (SMEs) depend on fuel to generate power for their businesses, the scarcity has further worsened idle capacities since capacity utilisation continues to decline among businesses.
“Idle capacity will eventually trigger low production and profit, leading to retrenchment or layoffs of workers,” the association added.
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