Oil marketers can’t raise N10b as CBN shuts forex window
By Jeph Ajobaju, Chief Copy Editor
Scarcity of foreign exchange (forex) and the reluctance of banks to grant loans may force the closure of many fuel depots as operators find it had to meet the new requirement for payment of between N5 billion and N10 billion demanded by the Nigerian National Petroleum Company (NNPC) for them to lift fuel from its ships.
Many fuel stations in Lagos are not selling products, with sources saying depot owners are struggling to raise money to make new orders from the NNPC.
“NNPCL has enough stock in-country and we still buy from them pending when arrangements would be made for us to start ordering our products ourselves. Now, we have to raise about N10 billion, some N5 billion, depending on the volume of the order to be able to access new products,” one of the sources disclosed.
He said the amount is in addition to the payment already made before the increase in the price of petrol.
Mike Osatuyi, Independent Petroleum Marketers Association of Nigeria (IPMAN) National Controller of Operations, confirmed the affected stations do not have products due to the increase in prices at depots.
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Fuel tanker now costs N23m
Osatuyi said filling station owners are now required to pay between N22.5 million and N23 million for a tanker of petrol, against N8 million before May 29 when President Bola Tinubu announced removal of fuel subsidy, per The PUNCH.
Former Major Oil Marketers Association of Nigeria (MOMAN) Chairman, Tunji Oyebanji, also confirmed the cost of 33,000 metric tonnes of petrol at depots has shot up to N21 million.
Many depots are out of stock as they had exhausted their stocks before Tinubu’s announcement on May 29.
“Many depot owners would not be able to access funds because banks are skeptical of granting loans to the downstream sector,” a source explained.
The pump price of petrol, which was between N179 and N200 per litre before subsidy removal, has skyrocketed to between N500 and N800 since the removal of subsidy.
Oyebanji told The PUNCH many smaller firms in the downstream sector would be forced to shut down and may be bought by bigger ones due to their inability to meet the huge financial obligations to secure new products from the NNPC.
A source in the NNPC said the company has been having challenges accessing foreign exchange (forex) from the Central Bank of Nigeria (CBN) since the removal of subsidy.
“Since full deregulation started, CBN has stopped giving us forex. We also have to source for dollars just like every other player in the downstream sector.
“So, depending on the dollar rates and other market indices, we import and have to also factor other costs before we sell to marketers,” he added.