It is unarguable that one of the major achievements of the President Goodluck Jonathan-led administration has been its ability to address the issue of fuel scarcity, which had become a recurrent challenge under previous administrations.
Recall that there were times when motorists had to endure long queues at filling stations, with the situation sometimes lasting for weeks or even months. The attendant hardship was enormous, as motorists lost valuable hours and productive time waiting to purchase fuel.
The present administration swung into action, and the bitter memories of prolonged queues at petrol stations gradually became a thing of the past.
Unfortunately, as Nigeria moves towards the 2015 general elections, that ugly situation appears to be rearing its head again, this time at an alarming rate.
It is therefore important to let the public know what may be responsible for the current situation, with a view to finding an urgent solution and ensuring that fuel scarcity does not jeopardise the smooth conduct of the forthcoming elections.
The Petroleum Products Pricing Regulatory Agency (PPPRA) has projected national petrol consumption at about 40 million litres per day. Whether this figure is entirely accurate or not remains a subject of debate, particularly because the basis for the projection has not been convincingly substantiated.
What cannot, however, be disputed is that the present administration has, over time, ensured regular supply of petroleum products across the country.
It should also be noted that, based on the 40 million-litre daily consumption figure, the Nigerian National Petroleum Corporation (NNPC) is mandated to supply 50 per cent, while the remaining 50 per cent is expected to come from other petroleum marketers.
Members of the public should also be aware that, based on the available figures, NNPC has not failed to meet its required 50 per cent supply obligation.
While other factors may have contributed to the current situation, some issues are worthy of consideration.
First, the immediate fuel scarcity appears to be linked more to issues surrounding petroleum marketers and financing than to the direct control of the Petroleum Minister, who, ironically, has primary responsibility for petroleum matters.
Second, petroleum marketers have reportedly complained of severe financial pressures, including substantial indebtedness to banks arising from previous transactions involving subsidy payments that remain outstanding.
Third, banks have reportedly become reluctant to open new letters of credit for marketers until existing obligations are settled.
At this point, it is important to examine the role of the Minister of Finance and Coordinating Minister of the Economy, whose responsibilities include the administration of the national budget and matters relating to subsidy funding, as well as the broader financial framework within which the Central Bank of Nigeria and commercial banks operate.
This raises some fundamental questions that demand urgent answers.
How was the subsidy budget determined?
Is the subsidy budget being administered appropriately?
Why are petroleum marketers and financial institutions caught in a dispute while ordinary Nigerians bear the consequences?
What are the economic implications of allowing the situation to persist?
The consequences are already visible.
Industries and businesses are losing valuable operating hours, while civil servants, public servants, entrepreneurs and other motorists spend productive time in lengthy queues at filling stations.
The situation is also creating serious traffic and safety concerns. In some areas, motorists waiting for fuel block major roads and force other road users into oncoming traffic lanes.
One cannot help but wonder what could happen in an emergency when an ambulance or another vehicle conveying a critically ill person to hospital is caught in one of these fuel queues.
There is also the attendant danger of people resorting to storing petrol in their homes because of the fear that they may not be able to obtain the product when needed. Apart from being hazardous, such practices could expose families and communities to avoidable fire disasters.
When important policy decisions are being taken, all relevant stakeholders must be carried along. Government agencies, petroleum marketers, financial institutions and other critical players in the downstream petroleum sector must be able to work together to prevent disruptions that ultimately inflict hardship on ordinary Nigerians.
The current fuel situation demands urgent attention.
Those responsible for resolving the issues surrounding supply, financing and distribution must act swiftly to restore normalcy and prevent the crisis from worsening.
Nigeria cannot afford a fuel crisis that disrupts economic activities, creates unnecessary hardship for citizens and raises concerns about the smooth conduct of the 2015 general elections.
The time to act is now.
— Wole Arisekola
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