Financial Energy Review
…… Abisoye Shola……
Petroleum products marketers has called the federal government to ensure strict monitoring of the distribution of petroleum products as the borders are opened.
This is to check snuggling of petroleum products a cross the Nigeria’s borders to neighbouring countries.
The oil marketers, on Thursday, advised the government to ensure stricter monitoring of supply and distribution of petroleum products across the country.
Their call follows the announcement of the reopening of 4 land borders across the country by the Federal Government after 16 months of shutdown.
The marketers explained that monitoring of petroleum products from the point of loading to distribution would help curb smuggling activities.
The Chief Executive Officer for Dateline Energy Services, Mr Wilson Opuwei, remarked that the reopening of the borders was a welcome development.
“It is a step in the right direction but there is the need to do some sort of close monitoring of what goes around in those places. There should be close monitoring of the movement of goods and even humans. Also, the government needs to monitor the supply and distribution of Petroleum products from end to end.
“So the reopening of the borders is a good thing because it will encourage trade between Nigeria and neighbouring countries but government needs to be proactive in ensuring that proper monitoring mechanisms are put in place” he said.
While making his own contribution, the Chairman, Major Oil Marketers Association of Nigeria (MOMAN), Tunji Oyebanji, said that the reopening of the borders might lead to resurgence of smuggling activities unless surveillance was intensified by security agencies.
Oyebanji said smuggling of petroleum products was driven by the price disparity between Nigeria and her neighbouring countries.
“Until we fix that, the attraction for smuggling will always be there. If we keep prevaricating between allowing market forces to determine price and then announcing price reductions, I don’t think we will see the end of smuggling.
“What I know is as long as you have an artificially low price in Nigeria, there will be an attraction to smuggle products to neighbouring countries. Of course open borders are likely to facilitate the process” he said.
