OIL MARKETERS CALL FOR THE ADOPTION OF NAIRA TRANSACTIONS BY NIMASA AND NPA.

The Nigerian Oil Marketers Association (OMA) has urged NIMASA and the Nigerian Ports Authority (NPA) to abide by the Federal Government's order regarding Naira transactions.

Mahmood Tukur, Vice Chairman II of the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), stated this in a statement on Sunday.

Based on an agreement struck with stakeholders, the federal government instructed ports fees to be collected in Naira through its downstream regulator.

The instructions were included in a statement released in November 2021 and signed by the presidents of the Nigeria Midstream and Downstream Petroleum Regulation Authority, Major Oil Marketers Association of Nigeria, and DAPPMAN. The agencies were still collecting fees in dollars while disobeying orders.

The government issued orders requiring these agencies to start billing marketers in Naira, but those orders had not been carried out.

However, we claim that Naira can be used for payment. That is one method of really decreasing market demand (for dollars), that will lead to reduction in the impact of FOREX.

“They should only implement a direction given by the government, and we can ensure that price of petroleum products will reduce,” Tukur added. If these products are consumed locally and intended for local ports, why are the NPA and NIMASA charging in dollars？

The Chairman of the DAPPMAN, Winifred Akpani, was also reported in the release as noting that the FOREX issue was having an impact on petroleum marketers.

She mentioned that freight fees are being paid in dollars to rent a ship that could transport 20,000 metric tonnes of PMS within Nigeria for 10 days.

At the official FOREX rate of N440, that comes to around N220 million, and a whopping N440 million for gasoline merchants who must obtain FOREX on the black market at N880.

The FOREX official/parallel market cost of N11 per litre for this transaction.

For the same transaction, Jetty fees are once more calculated in Naira and are N15.4 million at the official FOREX rate and N30.8 million for petroleum marketers who purchase their fuel on the black market.

In a similar vein, Jetty Berth costs N2.2 million at the official FOREX rate and N4.4 million on the black market.

Then there are port dues (NPA and NIMASA), which are charged in dollars and amount to N71.51 million at the official FOREX rate and N142.796 million for marketers who purchase FOREX on the black market, she continued.

With the acquisition of OVH, she said that the NNPC, historically the supplier of last resort, is now the main oil downstream corporation in the nation.

Without a level playing field, particularly one that ensures that all marketers have access to dollars at the official rate, their capacity to import goods is consistently and severely restricted.

When access to FOREX is made available to all operators at the official rate and subsidies are eliminated entirely, the full availability of products, in particular PMS, would see a noticeable improvement. (NAN)