Sep 20, 2021

Mawazo Writing Africa

Writing about the main

FG expends N364 billion on petrol transportation —

Between March 2020 and March 2021, the most populous black nation devoured around 17.265 billion liters of gasoline. In the absence of functional refineries, the amount shipped swallowed up N364 billion, despite a gross swap that doubled freight costs.

While the company’s Group Managing Director (GMD), Mele Kyari, announced that it was no less as N21 to land every liter of fuel in the country in terms of cargo, most stakeholders are unsettled by the fee, claiming that corruption in the downstream sector, challenges in the country’s port and other systemic inefficiencies were responsible for the high fee / p>

Given the ongoing infrastructure problems, particularly the inability of the state-owned oil company to operate its pipeline network, stakeholders fear that Nigerians may continue to suffer from the government’s inability to fix the supply chain anomaly in the downstream industry, even if the Dangote, Port-Harcourt, Warri et al nd Kaduna will be put into operation.

For many, the belief that the tap price of gasoline could fall in the country with local refining is elusive as cross-border trade with infrastructure gaps amid the African Continental Free Trade Area (AFCTA) that intends to boost trade on the continent.

Under a subsidy regime buried in opacity and corruption, some actors believe that freight charges, which they see as a measure to support the economies of other countries , with the minimal involvement of Nigerians in the shipping industry, could have been purposely inflated.

At one time, cost management and efficiency are priorities of most nations and organizations. for which the federal government is currently taking out loans totaling N 570 billion.

The development is also seen as one of the main reasons for the country’s foreign exchange crisis, which has contributed immensely to the devaluation of the naira to an all-time low.

In March 2021, 1.782 billion liters of gasoline were used in the country. For the previous month, 1.41 billion liters, equivalent to 50.52 million liters per day, were swallowed, just like the consumption statistics in January were 1.44 billion liters, which corresponds to 46.30 million liters / day.

< p> In December 2020 it was 2.254 billion liters of gasoline, which corresponds to 72.72 million liters per day. 1.723 billion liters were devoured in November.

October accounted for 1.224.20 billion liters, 0.59 billion liters for September, and August for 0.95 billion liters, which is 30.53 million liters a day corresponds, while July recorded 1.02 billion liters, about 32.95 million liters / day.

In June the consumption was 1.34 billion liters, which corresponds to 44.62 million liters per day, during in May, 0.95 billion liters or 30.67 million liters were consumed daily.

April released 0.94 billion liters and 1.73 billion liters went down in March. This brought the number to 17.265 billion liters and the freight cost to 364 billion N.

Energy expert Henry Adigun told The Guardian that development was a “challenge”, bad system, smuggling and port challenges showing up in the eventual costs.

Without a good depot, functioning pipelines and an efficient supply network, Adigun says, the new refineries that come on stream could face greater challenges.

Loud According to energy scientist Prof. Wunmi Iledare, the fund would have been an elixir for the country’s ailing economy if domestic refineries had worked.

Another academic at Ibadan University, Adeola Adenikinju, said the costs were avoidable , stated that Nigeria does not play a major role in the shipping industry as the sector is dominated by foreign companies.

As a result, payments go alongside creation of jobs to expatriates.

Executive Director, CISLAC, Auwal Ibrahim Musa (Rafsanjani), said freight charges compared to Nigeria’s regime of a crude oil swap deal, which means goods are exported first, refined and is imported back into the country. shows the height of inefficient decisions that the government makes to the detriment of its citizens.