The oil markets have formally requested a grant of N100 billion from President Bola Tinubu to help prevent the impending closure of 10,000 marketers' businesses in the coming weeks. The letter, dated October 21, outlines the severe financial challenges faced by the sector.
Dr. Joseph Obele, the National Public Relations Officer for the Petroleum Traders Association of Nigeria (PETROAN), highlighted the dramatic increase in costs, stating that the price of a truckload of Premium Motor Spirit (PMS) has surged from N7 million to N47 million over the past 16 months.
“There was a meeting at the national headquarters of PETROAN three days ago, where it was indicated that about 10,000 of our members would quit business in the next 45 days due to severely affected trading capital,” Obele explained. “That was why we wrote a letter to Mr. President, requesting this grant to save the affected marketers’ businesses.”
Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria, corroborated the crisis, noting a decline in fuel consumption and increased costs affecting their operations. “We have reduced the quantity of fuel we buy. For instance, someone who bought 10 trucks before can only buy eight now,” he said, emphasizing the impact on business volumes.
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) also highlighted the repercussions of this situation, including job losses for truck drivers and petrol station employees. Secretary-General Mr. Afolabi Olawale remarked, “Many petrol station owners cannot even buy a single truckload, which has affected our members. Those who are truck drivers hardly get loads to carry anymore.”
The unfolding situation has left many in the industry concerned about the future, with significant implications for both formal and informal workers in the oil sector. Olawale noted that while the effects are widespread, those in the downstream sector—truck drivers, station workers, and representatives at depots—are the most severely impacted.