In this article NOGASA has called on President Bola Tinubu to declare a state of emergency on the country’s refineries, if the economy must be stabilized.
Just two months after the announcement of the technical completion of the Port Harcourt refinery, Against the current backdrop of the oil and gas sector in Nigeria, the Chairman of Natural oil and Gas suppliers’ association of Nigeria (NOGASA), Chief Benneth Korie, recently called for a declaration of a state of emergency on the country’s refineries. This measure, according to him, would make it possible to significantly restructure the national economy.
READ: Oil And Gas Consultancy Services
Addressing a press conference in Abuja, Chief Korie stressed the critical importance of fully operating Nigerian refineries to stabilize prices and reduce continued dependence on importation. He also spoke of the need for government to do everything possible to revive production facilities and maintain the stability of the exchange rate between the naira and the dollar.
According to him, the main reason why refineries are not yet fully operational is the unstable exchange rate, which has a direct impact on the cost of operations. He also highlighted the urgent need to reintroduce compensation payments for fuel transporters to mitigate the negative effects of subsidy removal on prices.
READ: COMPRESSED NATURAL GAS (CNG) AND THE BENEFITS
Furthermore, the president of NOGASA questioned the government’s forecasts for the year 2024, which expect an exchange rate of 750 naira to the dollar, while the price on the black market is approaching 2,000 naira. He urged maritime authorities to stop demanding dollar payments for services rendered to Nigerians.
In conclusion, the message is clear: Nigeria’s oil and gas sector faces major challenges that require immediate action to avoid disastrous consequences for the national economy. It is imperative that authorities take swift and decisive action to stabilize the situation and ensure the long-term viability of the industry.