The Major Energy Marketers Association of Nigeria (MEMAN) has revealed that the depreciation of the Naira and other challenges have disrupted operations and investments in the downstream sector.
Clement Isong, the Executive Secretary/CEO of MEMAN, made this known during a media forum held in Lagos. Isong highlighted the uncertainty in the foreign exchange (forex) market as a major obstacle hindering members from effectively marketing petrol nationwide. He explained that while marketers receive products from the Nigerian National Petroleum Company Limited (NNPCL) for retail, payments for ship-to-ship offload are conducted in US Dollars, resulting in increased costs whenever the exchange rate rises.
“We are presently concerned about sustainability, efficiencies, and affordability of energy for Nigerians, and we are encouraging a shift to energy transition specifically into the gas space,” Isong emphasized.
Despite the Federal Government’s intervention process following its exit from the petrol subsidy regime, Isong noted that the dollarization policy is undermining the industry and discouraging investment. He attributed this primarily to fluctuating dollar movements and the unpredictability of the exchange rate.
Adelanke Bayo-Adepoju, a Gas and Renewable Energy Specialist at MEMAN, also spoke during the forum, shedding light on the benefits of transitioning to Compressed Natural Gas (CNG) as an alternative to petrol. She revealed that concerted efforts have been made to convert about 1 million vehicles to run on CNG by 2027, along with the establishment of over 1,000 conversion workshops across the country.