Fuel Scarcity – Tech | Business | Economy https://techeconomy.ng Tech | Business | Economy Tue, 20 Aug 2024 06:19:00 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0 https://techeconomy.ng/wp-content/uploads/2025/06/cropped-256Px-32x32.png Fuel Scarcity – Tech | Business | Economy https://techeconomy.ng 32 32 Tankers Empty as Fuel Scarcity Worsens https://techeconomy.ng/tankers-empty-as-fuel-scarcity-worsens/ https://techeconomy.ng/tankers-empty-as-fuel-scarcity-worsens/#respond Tue, 20 Aug 2024 06:19:00 +0000 https://techeconomy.ng/?p=140396 Empty tankers are currently at various depots in Lagos waiting to load Premium Motor Spirit (a.k.a petrol), for onward delivery to states across.

This is following worsening the scarcity of fuel in the West African country.

Although, some of the trucks had started loading, the supply of the product by the Nigerian National Petroleum Company Limited (NNPC) was still not enough, according to Punchng.com’s report.

Oil marketers confirmed the commencement of loading, but expressed fear that the queues may not disappear till Friday.

Techeconomy’s correspondent sighted long queues of empty tankers, moving from Barlet bus stop towards Ijesha onward Mile 2 axis.

Long fuel queues have repeatedly rocked capital city Abuja, Nasarawa, Niger, and neighbouring states in recent times, resurfaced in Lagos on Sunday.

However, Olufemi Soneye, the chief corporate communications officer of NNPC, had said the oil firm was working hard to tackle the fuel supply challenges, stressing that the queues should clear by mid-week.

“It’s just an evacuation challenge out of Apapa (ports in Lagos) from the vessel. But we are working on it. It should be resolved. I’m very sure that fuel scarcity will be cleared out by Wednesday,” Soneye stated.

However, when contacted on Monday for updates on the fuel supply situation, Abubakar Maigandi, the national president of Independent Petroleum Marketers Association of Nigeria, said marketers would only supply what they got from NNPC.

On his part, Chief Ukadike Chinedu, the national publicity secretary of the Independent Petroleum Marketers Association of Nigeria, said the challenges in the downstream oil sector were compounded by the recent nationwide hunger protests.

“Aside from the fact that there is not enough supply, the recent protests disrupted activities in the downstream oil sector. We are still struggling to sort that one out and there is also the challenge of low supply of petrol,” he stated.

NNPC is the sole importer of petrol into Nigeria. Other dealers stopped importing the commodity due to their inability to access the United States dollar required for PMS importation.

Responding to an enquiry on why the queues for petrol had failed to clear across the country, Maigandi said, “In our case, we depend on the supply of products from NNPC. So, if they supply products to us, we will move the products to our filling stations.

“They are saying that they have some challenges. So, we are still waiting. Some of our trucks are already at the loading stations of depots waiting to load petrol. Many of our trucks are there.

“But I know that there will be some changes soon because some trucks have started loading. However, it is not every depot that has products now. Some of the depots don’t have products and many of these depots are in Lagos.”

When asked when the queues would clear, the IPMAN president replied, “I cannot say anything about that for now because it depends on the way fuel is being released. So, it depends on the supply from NNPC.”

The fuel queues in Lagos, Abuja and other parts of the country continued to spread despite the assurances from NNPC that the queues would clear by Wednesday.

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Empowering Citizens: Synergies and Responsibilities in Addressing Persistent Fuel Scarcity in Nigeria https://techeconomy.ng/empowering-citizens-synergies-and-responsibilities-in-addressing-persistent-fuel-scarcity-in-nigeria/ https://techeconomy.ng/empowering-citizens-synergies-and-responsibilities-in-addressing-persistent-fuel-scarcity-in-nigeria/#respond Wed, 01 May 2024 12:41:56 +0000 https://techeconomy.ng/?p=130332 Fuel scarcity is a pressing issue in Nigeria, with long queues at petrol stations and disruptions to daily life becoming all too common.

While the root causes of this problem are complex and multifaceted, citizens have a pivotal role to play in finding solutions and addressing the challenges at hand.

By taking proactive steps and embracing sustainable practices, individuals can contribute to a more secure and resilient energy future for the country.

In addressing the ongoing challenge of persistent fuel scarcity in Nigeria, it is crucial to explore synergistic approaches that involve a combination of efforts from various stakeholders.

By delving into the underlying issues and thought processes contributing to this dilemma, we can better identify effective solutions for both immediate relief and sustainable future outcomes.

This discussion aims to shed light on the synergies that can be harnessed to tackle the root causes of fuel scarcity, as well as the critical role of citizens in taking up their responsibilities to address this pressing issue.

Issues:

  1. Inadequate refining capacity: Nigeria relies heavily on fuel imports as its refineries are not functioning at nil or full capacity. This leads to frequent shortages and long queues at filling stations.
  2. Corruption and inefficiency: The fuel distribution system in Nigeria is plagued by corruption and inefficiency, leading to hoarding and diversion of fuel meant for the general public.
  3. Poor infrastructure: The transportation and distribution network for fuel in Nigeria is inadequate and poorly maintained, leading to delays and shortages.
  4. Subsidy removal: The government’s decision to remove fuel subsidies has led to higher fuel prices, making it difficult for many Nigerians to afford fuel.

Thought processes:

  1. Increase refining capacity: Nigeria needs to invest in upgrading and expanding its refineries to reduce its reliance on imports and ensure a steady supply of fuel.
  2. Improve governance and regulation: The government needs to tackle corruption in the fuel distribution system and strengthen regulations to prevent hoarding and diversion of fuel.
  3. Enhance infrastructure: Investments in infrastructure such as pipelines, storage facilities, and transportation networks are crucial to ensure the efficient distribution of fuel.
  4. Diversify the energy sector: Nigeria should explore alternative sources of energy such as renewable energy to reduce its dependence on fossil fuels and mitigate the impact of fuel shortages.

Solutions for now:

  1. Ensure transparency in fuel distribution: The government should enforce strict regulations and penalties for those found hoarding or diverting fuel meant for the public.
  2. Invest in infrastructure: Prioritize investments in infrastructure to improve the transportation and distribution of fuel across the country.
  3. Subsidy reforms: Implement targeted subsidy programs to mitigate the impact of fuel price increases on the most vulnerable populations.
  4. Public awareness campaigns: Educate the public on the causes of fuel scarcity and the importance of conserving fuel to reduce demand.

Solutions for the future:

  1. Renewable energy transition: Invest in renewable energy sources to reduce dependence on fossil fuels and ensure sustainability in the long term.
  2. Deregulation of the energy sector: Implement policies to encourage competition and investment in the energy sector to increase efficiency and reduce reliance on imports.
  3. Promote innovation: Support research and development in alternative fuels and technologies to diversify the energy mix and reduce dependency on traditional fuels.

In exploring solutions to the persistent fuel scarcity issue in Nigeria, it is valuable to look at examples of other nations that have faced and successfully overcome similar challenges.

By studying the experiences of countries that have effectively addressed their fuel scarcity problems, we can gain insights into the strategies and measures that have proven successful in resolving such issues.

This comparative analysis can provide valuable lessons and inspiration for devising effective solutions that can be adapted to the Nigerian context.

One example of a nation that has successfully overcome fuel scarcity challenges is Brazil. In the 1970s, Brazil faced frequent fuel shortages due to its heavy dependence on imported oil. However, the government implemented several policies and initiatives to address these issues, leading to Brazil becoming a self-sufficient and leading producer of biofuels, particularly ethanol.

Brazil’s success in overcoming fuel scarcity included the following strategies:

  1. Diversification of energy sources: Brazil invested heavily in biofuels such as ethanol and biodiesel to reduce its reliance on imported oil. This transition to renewable energy sources helped to ensure a stable and secure fuel supply.
  2. Government support and incentives: The Brazilian government implemented policies to promote the production and consumption of biofuels, including tax incentives, subsidies, and mandates for blending biofuels with gasoline.
  3. Infrastructure development: Brazil invested in building a robust infrastructure for the production, distribution, and consumption of biofuels, including ethanol refineries, storage facilities, and fueling stations.
  4. Technological innovation: Brazil made significant advancements in research and development of biofuel technologies, leading to more efficient production processes and higher-quality fuels.

Today, Brazil is a global leader in biofuel production and exports, with over 40% of its transportation fuel coming from biofuels.

The country has significantly reduced its dependence on imported oil, ensuring a stable and secure fuel supply for its citizens. This successful transition serves as an example of how a nation can overcome fuel scarcity challenges through diversification, government support, infrastructure development, and technological innovation.

Another example of a nation that has successfully addressed fuel scarcity challenges is Malaysia. Malaysia faced issues with fuel supply insecurity due to its heavy dependence on imported oil and the volatility of global oil prices.

To overcome these challenges, Malaysia implemented several strategies to ensure a stable and secure fuel supply for its citizens.

One key initiative that Malaysia undertook was to promote the development of its domestic oil and gas resources. The country invested in exploration and production activities to increase its oil and gas reserves, thereby reducing its reliance on imported fuel.

Malaysia also diversified its energy sources by investing in renewable energy sources such as hydroelectric power, solar energy, and biomass.

Furthermore, Malaysia implemented policies to promote energy efficiency and conservation, including the introduction of energy efficiency standards, fuel subsidies, and public awareness campaigns. The government also prioritized the development of alternative fuels, such as biodiesel and biofuels, to reduce reliance on traditional fossil fuels.

As a result of these efforts, Malaysia was able to ensure a stable and secure fuel supply for its citizens, despite external factors such as fluctuating global oil prices. The country’s successful strategies in addressing fuel scarcity challenges serve as a valuable example for other nations facing similar issues.

Nonetheless, exploring the benefits of Nigeria’s membership in the Organization of the Petroleum Exporting Countries (OPEC) and how this affiliation could potentially assist in addressing challenges such as fuel scarcity is crucial.

By examining the advantages that come with being a part of OPEC, we can consider the resources, support systems, and collaborative opportunities available through this organization that may present viable solutions to Nigeria’s fuel scarcity issues. Understanding the significance of Nigeria’s OPEC membership and its potential role in alleviating fuel shortages is essential in devising comprehensive strategies for addressing this pressing concern.

Nigeria, as a member of the Organization of the Petroleum Exporting Countries (OPEC), benefits from several advantages that could potentially help alleviate the challenges of fuel scarcity in the country:

  1. Market stability: OPEC member countries work together to coordinate oil production levels, prices, and export policies. This helps stabilize global oil markets and reduce price volatility, which can indirectly benefit Nigeria by providing a more predictable revenue stream from oil exports.

 

  1. Production quotas: OPEC members agree to production quotas to manage global oil supply and demand. By adhering to these quotas, Nigeria can contribute to maintaining a balance in the oil market, which can help support stable prices and secure export markets.

 

  1. Policy coordination: Being a member of OPEC allows Nigeria to participate in discussions and decision-making processes that shape global oil policies. This can provide Nigeria with insights into market trends, production forecasts, and geopolitical developments that may impact its oil industry and fuel supply.

 

  1. Information sharing: OPEC provides member countries with data and analysis on global oil markets, demand projections, and emerging trends. This information can help Nigeria make informed decisions about its oil production, export strategies, and long-term energy policies.

While being a member of OPEC offers advantages in terms of market stability, coordination, and information sharing, it is important for Nigeria to also address domestic challenges, such as refining capacity, infrastructure development, and economic diversification, to effectively tackle the issue of fuel scarcity in the country.

Collaborating with other OPEC members and implementing domestic reforms can complement each other and contribute to a more sustainable and secure energy future for Nigeria.

Furthermore,  it is essential to consider the role and responsibility of citizens in addressing and resolving this issue.

Citizens play a crucial role in solving the problem of fuel scarcity in Nigeria. Here are some ways in which citizens can contribute to addressing this challenge:

  1. Conservation: Citizens can reduce their fuel consumption by carpooling, using public transportation, walking, or biking whenever possible. By using fuel more efficiently, individuals can help alleviate the strain on fuel supply and reduce overall demand.

 

  1. Support alternative energy sources: Citizens can advocate for and invest in renewable energy sources, such as solar or wind power, as alternatives to traditional fuel sources. This can help diversify the energy mix and reduce reliance on fossil fuels.

 

  1. Demand accountability: Citizens can hold government officials and fuel suppliers accountable for addressing the root causes of fuel scarcity, such as inadequate infrastructure, corruption, and mismanagement. By speaking out against inefficiencies and advocating for transparency and reform, citizens can push for long-term solutions to the problem.

 

  1. Promote local production: Citizens can support local initiatives to increase domestic oil production, refine crude oil locally, and invest in infrastructure improvements. By promoting local production and reducing dependence on imported fuel, citizens can help strengthen the country’s energy security and resilience.

 

  1. Participate in community initiatives: Citizens can join or support community-based initiatives that promote sustainability, energy efficiency, and responsible fuel use. By working together with neighbours, local organizations, and businesses, citizens can collaborate to find innovative solutions to the problem of fuel scarcity.

Overall, citizens have a key role to play in addressing fuel scarcity in Nigeria by adopting sustainable practices, advocating for change, supporting local initiatives, and fostering a culture of responsible energy consumption.

By taking individual and collective action, citizens can contribute to a more secure, resilient, and sustainable energy future for the country.

In conclusion, the problem of fuel scarcity in Nigeria requires a coordinated and multi-faceted approach, with citizens playing a crucial role in finding lasting solutions.

By conserving energy, supporting alternative sources, demanding accountability, promoting local production, and participating in community initiatives, individuals can contribute to alleviating the strain on fuel supply and building a more sustainable energy system.

Through collective action and shared responsibility, citizens can help address the root causes of fuel scarcity and pave the way for a more secure and resilient energy future in Nigeria.

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AI and cybersecurity, Solutions to Recover Kidnapped Students and Bilateral approaches - Prof. Ojo Emmanuel Ademola
The Writer: Prof. Ojo Emmanuel Ademola is the first Nigerian Professor of Cyber Security and Information Technology Management, and the first Professor of African descent to be awarded a Chartered Manager Status.

 

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Fuel Scarcity Worsens despite NNPC’s Promises https://techeconomy.ng/fuel-scarcity-worsens-despite-nnpcs-promises/ https://techeconomy.ng/fuel-scarcity-worsens-despite-nnpcs-promises/#respond Mon, 29 Apr 2024 07:43:00 +0000 https://techeconomy.ng/?p=130067 Nigerians in Lagos and other parts of the country are still struggling to get Premium Motor Spirit (PMS) as many filling stations remained under lock and key throughout the weekend.

Recall that the NNPC Ltd had blamed logistics bottlenecks as the primary reason for the long queues built up in filling stations in some parts of Nigeria, especially Lagos State and Abuja.

The resurface of long queues at the filling stations created fears of impending fuel scarcity and possible hike in price.

fuel scarcity hurting small businesses
fuel scarcity hurting small businesses

A statement made available to TECHECONOMY by Olufemi Soneye, the chief corporate communications officer of the NNPC Ltd. Reads:

“The Nigerian National Petroleum Company Limited (NNPC Ltd) wishes to clarify that the tightness in the supply of Premium Motor Spirit currently being experienced in some areas across the country is as a result of logistics issues and that they have been resolved.

“It also wishes to reiterate that the prices of petroleum products are not changing.

“It urges Nigerians to avoid panic buying as there is a sufficiency of products in the country”.

However, eye witness account shows the situation might worsen in Lagos and other parts of the South-West like Ogun, Oyo, Osun and others because there was a directive by the Nigerian National Petroleum Company Limited (NNPC Ltd) that fuel trucks must first service the Federal Capital Territory before any other place.

As a result, the majority of trucks leaving the depots in Lagos since Friday were heading for Abuja.

Officials of the NNPC Ltd and marketers told our correspondents that there was a directive that depots should service Abuja filling stations before any other part of the nation. They worried that queues might linger for the next three days in the South-West.

According to the oil sector sources, hundreds of trucks loaded on Saturday were sent to Abuja based on the NNPC Ltd directive.

The officials, who spoke on condition of anonymity because they were not authorised to speak to the press on the matter, also disclosed that the product was being rationed by the NNPC Ltd, which now allocates 5,000 metric tonnes of fuel instead of 10,000MT to depots.

“Because of the scarcity, there are directives that the product should be rationed. Depots now get about 220 trucks, which is half what they usually get. This is happening because of the erratic supply. If the NNPC Ltd had enough supply, it would give everybody what they needed, and there would be no queues,” one of the officials told Punch newspaper.

According to an operator, the erratic supply has been caused by the national energy company’s inability to import enough at the moment.

“The cause of the erratic supply is because the NNPC Ltd does not have enough fuel imported. Regardless of the money or anything, the NNPC Ltd sometimes experiences glitches in its supply. For example, at the NNPC Ltd Jetty in Apapa, as of Saturday, there was only one tanker at ASPM which can take about 40,000 metric tonnes; the three other reception points had no PMS vessel.

“Whenever the NNPC Ltd has disruptions in importation, we start having these issues. They will try hard to manage it, but it will later blow open. Last week, they said it was a result of logistics, but this is not about logistics; it’s about glitches in importation.

“All our trucks now are heading to Abuja. There was a directive to all dealers and marketers that they should serve Abuja first. All regulatory agencies know that products will go to Abuja until normalcy is restored. You can have your truck in the depot now for three to four days; they will just be telling you to hold on. You will not know what is happening. You will see other trucks going, not knowing their location determines their loading ahead of you,” the operator noted.

He added, “The South West will likely experience more queues in the next two to three days because the Abuja loading will continue until Monday. The government is prioritising Abuja;  they want the seat of power to have enough fuel supply.”

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Hajj Fare: NAHCON Boss Bemoans Inflation, Fuel Scarcity https://techeconomy.ng/hajj-fare-nahcon-boss-bemoans-inflation-fuel-scarcity/ https://techeconomy.ng/hajj-fare-nahcon-boss-bemoans-inflation-fuel-scarcity/#respond Tue, 11 Apr 2023 10:48:50 +0000 https://techeconomy.ng/?p=99588 Alhaji Zikrullah Hassan, Chairman and Chief Executive Officer of the National Hajj Commission of Nigeria (NAHCON), has attributed the increase in this year’s Hajj fare to inflation rates in both Nigeria and Saudi Arabia, as well as a scarcity of aviation fuel.

The fare increased from N2.5 million last year to between N2,880,000 and N2,999,000.

According to him, the 2023 Hajj fare has eight different prices. Pilgrims departing from Maiduguri and Yola in the North East will pay N2,890,000, which includes their 800-dollar Basic Travel Allowance (BTA).

”For the other Northern States, we have agreed that the cost is N2,919,000, we now move to the South which has six different price regimes, Edo State is N2,968,000 and the entire South-South and South East are in this same price regime. Ekiti and Ondo States are N2,880,000, Osun state is N2,993,000, and Cross River State incidentally has the cheapest which is N2,943,000, while that of Lagos, Ogun, and Oyo states is N2,999,000.”

Hassan explained that NAHCON and the state pilgrims boards and agencies made several efforts to keep the fare at the barest minimum level, while also considering the economic feasibility and reality of the situation.

He said: “I am sure all of you will also agree with me that there has been a global trend in countries of the world to hike the hajj fare. The commission and all the 36 states and the FCT pilgrims’ boards reviewed the 2022 operation and resolved to do everything that will make us get every pilgrim registered in Saudi Arabia in good time.

”We have also discussed the issue of Basic Travel Allowance (BTA) and Yellow Card and we have devised means to ensure that we are in control of the situation. We have also agreed that there will be zero tolerance for flight delay or cancellation this year and if there is such there will be sanction on the state or pilgrim or airline that is responsible for it.”.

Hassan further stated that President Muhammadu Buhari has approved the commission’s plans to operate with seven airlines this year.

Air Peace, Azman Air, Flynas, Aero Contractors, and Max Air, he says, will fly pilgrims from the 36 states and the FCT, while Arik Air and Value Jet Air will provide chartered flights for the Licensed Tour Operators.

He discussed that the NAHCON and State Pilgrims boards have agreed to close the portal for new registration of intending pilgrims using the Hajj Saving Scheme for Hajj on April 7.

“But we have also agreed that April 21 will be the day for the final remittance of funds by those who want to go to hajj either through the hajj saving scheme or through the normal pay-as-go. We have also agreed that May 21, will be the day for the inaugural flight for the 2023 Hajj”, he said.

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