The National Oil and Gas Suppliers Association of Nigeria (NOGASA) has called on the federal government to ensure that payments for petroleum products are made in Naira.
The recommendation is part of a broader set of measures to address the ongoing rise in the prices of petroleum products.
Benneth Korie, the national president of NOGASA, highlighted the challenges marketers face due to the current reliance on the U.S. dollar.
He expressed concern that most Nigerians conduct their trade in dollars, leading to difficulties for the modular refineries in the country.
Korie emphasized that the exchange rate and requests for dollar payments for services by agencies like the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Port Authority were contributing to the challenges faced by petroleum product suppliers.
He urged the government to promote using Naira for transactions related to petroleum products.
He stressed the importance of refining and selling refined products in Naira, suggesting that this approach could alleviate challenges related to the exchange rate and reduce the overall impact on the industry.
Additionally, Korie called for a review of the floating exchange rate regime and emphasized the need for standard road infrastructure across the country.
He argued that well-constructed roads would reduce the demand for spare parts, subsequently lowering the need for dollars among petroleum product suppliers.
Addressing concerns about the potential withdrawal of services by the Nigerian Association of Road Transport Owners (NARTO), Korie suggested that resolving issues related to the high cost of diesel and improving road infrastructure could alleviate the situation.
He also advised the government to reintroduce bridging (petroleum equalization fund) to reduce hardship.
He urged a reconsideration of interest rates charged by banks, which has been challenging for oil traders.
Korie hinted at the possible withdrawal of services by petroleum product marketers by the end of the month if their concerns were not addressed promptly.
