Even as stakeholders proffer divergent solutions to the debilitating fuel scarcity, marketers of the petroleum products have cried out that lack of finance is the key factor hampering sufficient importation of fuel into the country.
Even after government gave approval for renewal of licenses and also gave fresh licenses for marketers to bring in petrol and has also paid part of the outstanding debts being owed marketers, some of the license holders have complained that they are not getting commensurate cooperation from the banks; most of which have shut their doors on loans in respect of importation of petrol.
A source at one of the recently approved jetty for importation of PMS; D Jones Petroleum told Shipping Position Weekly that the jetty is yet to receive a vessel loaded with fuel because the banks have refused to come up with the funds. Our source explained that “it is difficult to import because many banks currently lack the capacity to fund fuel importation and the few that might be willing to lend money give conditions that make it extremely difficult to borrow”.
He went further to state that after the reform of the banking sector by the Central Bank of Nigeria, many of the banks no longer have the muscle to finance importation of the product. He however confirmed that in spite of all these, marketers are bringing in vessels, but not in the expected numbers because of the reasons mentioned.
Investigations have also revealed that among the 46 depots that are scattered around Lagos State alone, only five are currently involved in bringing in premium motor spirit which also explains the regular and unending queues still present at the filling stations.
Also, the federal government has so far paid N14bn out of the subsidy which she owes marketers of petroleum product reducing the present outstanding to about N27bn.
Speaking in like manner in a chat with Shipping Position Weekly, the chief executive officer of a major player in the downstream sector; Integrated Oil and Gas Ltd confirmed the early findings about the state of the banks saying that “the banks have not been there cooperating particularly with people who have put forward applications to them for the importation of PMS”.
He went further that “banks have been very selective in terms of what particular product they are going to sponsor, so if you for instance came to them with an application for PMS, because of the problems in PPPRA which is the government agent that reimburses you for the subsidy elements, PPPRA in time past have given a commitment to pay subsidies within a certain time range, but of course it takes two times that time range so the banks understand that there is a risk element which is inherent in the situation where subsidies were not received when they are expected”
Reason for this, according to him, is that the banks are scared of the risk involved because of changes in terms of interest and exchange rates and risk in terms of the timing, hence the banks prefer to sponsor products like AGO and DPK that are not under regulation.
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