Nigerian Oil Marketers Demand End To Dollar Transactions To Alleviate Economic Strain

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has raised a call for an end to dollar transactions within the Nigerian economy, citing the detrimental impact it poses on businesses and the populace at large.

Addressing the press on Tuesday, NOGASA’s National President, Benneth Korie, highlighted the pressing issues faced by oil marketers amidst escalating diesel prices, deteriorating roads, and the burden of conducting transactions in foreign currency.

Korie emphasized the absurdity of conducting local transactions in dollars, particularly within Nigeria’s borders. He pointed out the exorbitant charges imposed by entities like the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), exacerbating the challenges faced by oil and gas marketers.

“It makes no sense to buy petrol at N620 per litre only to incur additional costs using diesel priced at N1,700 per litre for transportation,” Korie stated.

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The association underscored the necessity of transitioning crude oil sales to the naira, even if pegged against the dollar, upon the commissioning of major refineries such as the Dangote refinery and the federal government refinery in Port Harcourt.

Korie asserted that such a move would alleviate the burden on marketers and contribute to mitigating the energy crisis gripping the nation.

Highlighting the adverse effects of the current economic climate, Korie warned of the imminent collapse of businesses within the oil and gas sector if urgent interventions were not implemented. He urged the federal government to consider temporarily pegging diesel prices, emphasizing that failure to address the prevailing challenges would lead to dire consequences.

Furthermore, Korie criticized the practice of NPA and NIMASA collecting payments exclusively in dollars, exacerbating the foreign exchange challenges faced by businesses. He called upon the government to intervene decisively, advocating for a shift towards conducting transactions in the local currency.

“We demand an end to the dollarization of our economy. Let transactions be conducted in naira within Nigeria’s borders,” Korie asserted.

Expressing concern over the punitive interest rates imposed by commercial banks and the dire state of the nation’s refineries, NOGASA appealed for the reintroduction and strengthening of the Petroleum Equalization Fund (PEF) to facilitate the recovery and reinvestment of funds by marketers.

In conclusion, Korie emphasized the urgent need for stakeholder dialogue to address the pressing issues confronting oil marketers, reiterating that the cessation of dollar transactions was paramount to restoring normalcy to the sector and the wider economy.