by Alaba Olusemore
Nigeria’s fuel scarcity persists despite significant investment in public refineries, which have consumed billions of Naira without delivering a permanent solution.
Meanwhile, private refineries face operational delays, and the sector is plagued by issues related to pricing and currency exchange rates, creating a cyclical problem.
To address this, several strategic actions are essential:
✓ Revitalize Refining Capacity: Redirect funds to overhaul public refineries and provide targeted support to expedite the production capabilities of private refineries. This will reduce dependence on fuel imports.
✓ Address Pricing and Currency Fluctuations: Implement a dynamic pricing model that adjusts to global crude prices while stabilizing the Naira to minimize the impact of currency fluctuations on fuel costs.
✓Build Strategic Reserves: Establish national fuel reserves to buffer against supply disruptions and seasonal demand spikes, providing stability in the market.
✓ Diversify Energy Sources: Promote the use of alternative fuels like CNG and LPG to reduce pressure on PMS demand and diversify Nigeria’s energy portfolio. Intensity current efforts.
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By tackling these areas, Nigeria can break the recurring cycle of fuel scarcity and establish a more stable and self-sufficient fuel supply system.