By Bimbola Oyesola
Against the backdrop of the persistent fuel scarcity in the country, the Nigeria Employers’ Consultative Association (NECA), yesterday, tasked the federal government on the implementation of robust regulatory measures to deter hoarding and ensure equitable fuel distribution.
The employers’ body said this will foster fair market practices and consumer accessibility. This is even as it warned that the idle capacity will eventually trigger low production and profit, leading to retrenchment/layoff of workers.
The Director General of NECA, Mr. Adewale-Smatt Oyerinde, while reiterating concern at the persistent queues for petrol at most filling stations in the country, warned that it is already impacting negatively on productivity and economic activities.
“Like a sore that has refused to heal, the recurrent issue of fuel scarcity has reared up its ugly head again, notwithstanding the removal of fuel subsidy. The ongoing scarcity, with attendant loss of productive man hours as a result of endless hours spent at filling stations defies logic,” he said.
The NECA boss said the ongoing disruption of businesses across diverse sectors, escalating transportation and logistical bottlenecks has progressively led to increased operational costs.
Notwithstanding the recent assessments by the Nigeria National Petroleum Corporation (NNPC) and petroleum stakeholders, which identified panic buying and unethical practices as primary contributors to the ongoing fuel crisis, the Director-General emphasised the urgent need for coordinated action, proposing strategic interventions to address the fuel scarcity and fortify organizational resilience.
He called for heightened collaboration among the NNPC, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), petroleum marketers and other stakeholders to optimize fuel distribution and mitigate supply chain disruptions.
The Director-General also pointed out the need to quickly lock-on to measures that will sustain the availability of the products in the medium and long runs such as strong encouragement for the Dangote refinery and other private sector refineries, while resuscitating the existing ones owned by the country.
Oyerinde added that due to the epileptic nature of electricity supply from the grid, as most businesses, particularly the Small and Medium Enterprise (SMEs) depends on self-electricity generation by utilizing fuel, the scarcity has further worsened idle capacities as capacity utilization continued to decline among businesses.