Nigeria is facing yet another wave of fuel scarcity, with long queues at filling stations becoming a common sight across the country.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has identified the root of the problem: an outdated and inefficient distribution system that can no longer meet the needs of the country’s growing population.
In an interview with the News Agency of Nigeria, PENGASSAN President Festus Osifo expressed deep concern over the state of Nigeria’s downstream oil and gas sector.
He highlighted the significant weaknesses in the country’s fuel distribution network, which he says is the primary cause of the recurring fuel shortages.
“The distribution chain in the downstream sector is weak. This is why we continue to see queues at filling stations. Even if the issue is resolved today, it will reappear tomorrow,” Osifo stated.
“Nigeria’s distribution system is outdated and insufficient for a country of our size and population.”
Osifo criticized the current system, which is heavily dependent on a single hub for fuel importation and relies mainly on trucking to distribute fuel nationwide.
“It’s alarming that a country as vast as Nigeria still depends on such an antiquated system for fuel distribution,” Osifo remarked.
The reliance on road transport for fuel distribution has proven to be a significant bottleneck, especially given Nigeria’s deteriorating road infrastructure and frequent flooding.
These challenges not only delay the transportation of fuel to various parts of the country but also increase the cost of distribution, leading to higher fuel prices for consumers.
Osifo further explained that the ongoing fuel shortages are exacerbated by the country’s inadequate infrastructure.
The poor state of roads, frequent flooding, and the lack of modern pipelines are major obstacles to efficient fuel distribution.
These infrastructure issues have created a fragile supply chain that is easily disrupted by even minor events.
“Nigeria’s infrastructure, particularly in the oil and gas sector, is in dire need of modernization. The government needs to develop and enhance our value chain if we are to avoid recurring fuel shortages,” Osifo stressed.
Osifo’s comments come at a time when the Nigerian government is under increasing pressure to address the root causes of the country’s fuel scarcity.
He urged the government to take immediate action to reform the distribution network and enhance the country’s infrastructure.
He also called for stricter enforcement of laws and penalties against those involved in oil theft, which has become a major problem in the country.
“The government needs to take a proactive approach to solving these issues. This includes modernizing our distribution system, improving infrastructure, and ensuring security in the oil and gas sector,” Osifo emphasized.
“We cannot continue to rely on an outdated system that is clearly failing to meet the needs of our population.”
The call for modernization is not new, but it has gained urgency in light of the recent fuel shortages.
Experts in the industry have long advocated for the construction of new pipelines, the rehabilitation of existing ones, and the development of alternative distribution channels such as railways and coastal shipping.
These improvements, they argue, would create a more resilient and efficient distribution network capable of meeting the country’s fuel demands.
Osifo also pointed out that local production costs in Nigeria’s oil and gas sector are 15 to 20 percent higher than in other parts of the world.
He attributed this cost disparity to the security challenges faced by oil and gas companies operating in the country.
The high cost of security, coupled with frequent attacks on oil facilities and pipelines, has made it more expensive to produce and distribute fuel in Nigeria.
“The security challenges in the Niger Delta and other oil-producing regions have significantly increased the cost of doing business in Nigeria’s oil and gas sector,” Osifo explained.
“The government needs to take responsibility for security in the sector to alleviate this burden on investors and help reduce production costs.”
