Business
Oil Marketers Request N100 Billion to Avoid Business Shutdowns
The oil markets have sent a letter to the President, dated October 21, seeking a grant of N100 billion to help prevent the imminent closure of businesses for about 10,000 marketers facing significant financial distress.
This appeal is due to the dire situation that many in the oil industry find themselves in during these challenging economic conditions.
Dr Joseph Obele, the National Public Relations Officer for the Petroleum Products Retail Outlets Association of Nigeria (PETROAN), expresses concerns regarding the skyrocketing costs within the sector.
He noted that the price of a truckload of Premium Motor Spirit (PMS) has skyrocketed from N7 million to an astonishing N47 million over the past 16 months.
This drastic increase has severely strained the financial viability of many marketers.
In a recent meeting held at PETROAN’s national headquarters, Dr. Obele revealed troubling projections that around 10,000 members may be forced to exit the business within the next 45 days due to expensive trading conditions.
He stated, “Our letter to the President reflects the urgent need for assistance.
The continuous rise in operational costs has made it nearly impossible for our members to sustain their businesses.
Without support, we fear many will be unable to keep their doors open much longer.”
Adding to the gravity of the situation, Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), acknowledged the concerning decline in fuel consumption affecting the industry.
He noted that the increased costs have compelled marketers to reduce their fuel purchases. “Previously, if someone bought 10 truckloads of fuel, they are now only able to afford eight.
This reduction means that we are not receiving the quantities needed to meet demand, and we are left selling only limited amounts,” Maigandi explained.
Also, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has raised alarms about the fallout from oil marketers’ inability to secure fuel supplies.
Mr Afolabi Olawale, the Secretary-General of NUPENG, painted a grim picture of the consequences faced by workers in the industry.
“The economic climate is bleak for many in this sector.
Numerous petrol station owners find it challenging to purchase even a single truckload of fuel, directly impacting our members,” he stated.
“Truck drivers struggle to find loads to transport, and many petrol stations have closed their doors, resulting in widespread job losses for station workers.”
The situation continues to evolve, and while Mr. Olawale noted that precise figures regarding the number of affected individuals remain elusive, he emphasized that the crisis affects both the formal and informal sectors of the economy.
“Everyone is feeling the impact, but those in the downstream sector, including truck drivers and petrol station workers, are facing the huge impact of these challenges,” he remarked.
It has been noted that the National Youth Service Corps (NYSC) and British American Tobacco Nigeria Foundation (BATNF) plan to renew their partnership in agribusiness.
The new project is to involve youth in the agriculture business, widen their horizons, and educate them about the agritech sector.
The general manager shared that “The foundation is not only providing grants but also building a system of mentorship, structure, and support that enables corps members to see agribusiness as a serious enterprise pathway.” The plan is to use the NYSC platform to engage youths.
Idi Mukhtar Maiha, Minister of Livestock Development, has revealed the government’s intention of placing women in the livestock transformation agenda that they have in store for Nigeria.
During a recent event, he praised women, describing them as the backbone of the country, and shared that the country will keep on needing their support, hence the inclusion of the agenda team.
He also praised the First Lady for the impact she has made in the country so far and her advocacy for women’s empowerment.
Nigerians react as a user claims and shares that the price of rice in Nigeria is already reducing.
“Rice prices are finally dropping, minimum wage can buy a bag now. Step by step, we’re getting there. Nigeria will work in our lifetime.”
It can be noted that rice was sold at ₦85k to ₦90k, however, according to a market survey, the price of rice has dropped to ₦56k to ₦62k.
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