Festus Osifo, President of the Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN), has pinpointed the weaknesses in the downstream sector’s distribution chain as the primary reason for the persistent fuel queues across the country.
Addressing the 2024 PENGASSAN Energy and Labour Summit in Abuja, Osifo emphasized that Nigeria’s outdated and insufficient distribution network cannot meet the demands of its large population.
He highlighted the reliance on a single point of product importation and truck-based distribution as a significant contributor to the problem.
Osifo attributed the fuel scarcity to a combination of factors, including the weak distribution chain, insufficient supply due to bad roads and flooding, high production costs, and security burdens on oil and gas companies.
To address these challenges, Osifo urged the government to develop and strengthen the value chain for efficient distribution. He also called for the government to take over security responsibilities from investors to reduce production costs.
Furthermore, Osifo advocated for stronger laws and sanctions against oil theft, as well as harsher penalties to deter illegal activities and promote industry integrity.
Without these reforms, Osifo warned that Nigeria will continue to experience recurring fuel shortages.
The PENGASSAN President’s remarks have sparked a crucial conversation about the need for comprehensive reforms in the downstream sector to ensure a reliable and efficient fuel distribution system.
