Lagos residents are once again struggling with fuel scarcity as numerous filling stations across the city have run out of stock. This has led to widespread closures and long queues at the few stations that still have fuel. A survey conducted on Sunday revealed that most filling stations along Ikorodu Road were closed, while those remaining open, such as NNPCL and NIPCO at Fadeyi Bus Stop, experienced significant queues. Similar situations were observed in areas like Bank Anthony, where only a handful of stations, including Total, Northwest, and NNPCL, remained operational. The Mobil Station in Salami Shaibu, Somolu Metropolis, was forced to close due to chaotic scenes caused by commercial vehicles scrambling for fuel.
Rise of Illegal Fuel Hawking
The fuel scarcity has created a lucrative opportunity for illegal fuel hawkers who have emerged along major roads like Ikorodu Road, Maryland, Gbagada, and Ogba. These hawkers are selling fuel at exorbitant prices to desperate motorists. This brings to light the persistent issue of black market traders that thrive during periods of scarcity, posing safety risks and exploiting consumers.
Blame Game: NNPC Accused of Supply Shortfall
Some fuel marketers, speaking anonymously, attributed the fuel shortage to NNPC Ltd.’s alleged inability to pay importers since March. They claim that as the sole importer of fuel, NNPC is responsible for the current crisis. Fuel scarcity is a critical issue affecting Nigeria with NNPCL being the sole importer concerns about the sustainability of Nigeria’s fuel supply chain have been raised, showing a divided trust in the capacity of the company to manage Nigeria’s fuel import given the potential financial constraints affecting its operations.
NNPC Denies Accusations
Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, refuted the allegations, stating that the company does not owe international oil traders $6.8 billion as reported. He explained that credit transactions are common in the oil trading industry. Soneye also denied claims that NNPC had not remitted funds to the Federation Account since January, emphasizing the company’s significant tax contributions. He clarified that the NNPC has no role in fuel quality and quantity control, which falls under the NMDPRA’s jurisdiction.
Economic Impact
The resurgence of fuel queues has far-reaching economic consequences, including increased transportation costs, higher prices for goods and services, and inflationary pressures. The reliance on illegal fuel hawkers exacerbates these problems due to safety concerns and inflated prices.
Way forward
To address this pressing issue of fuel supply, experts suggest policy reforms to encourage private sector participation, strengthen regulatory oversight, and improve NNPC’s financial stability. Diversifying fuel import sources and building a more resilient supply chain are crucial for preventing future fuel shortages.
While NNPC has emphasized transparency and accountability, the persistence of fuel scarcity challenges public perception of the company’s efficiency and reliability. Addressing these issues requires a comprehensive approach that involves both short-term solutions to alleviate the current crisis and long-term strategies to build a sustainable fuel supply system.
