A potential fuel crisis is looming in Nigeria as petroleum marketers warn of significant supply disruptions following the shutdown of the Nigerian National Petroleum Company Limited (NNPCL) petrol purchasing portal. The closure is expected to result in a scarcity of Premium Motor Spirit (PMS), commonly known as petrol, across the country.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed serious concerns about the situation in a statement made available to the public on Thursday. He revealed that the shutdown has left more than 2,000 pending tickets for the purchase of 45,000 liters of petrol each, leaving marketers in limbo and unable to access fuel supplies. "We have over 2,000 tickets waiting for the purchase of 45,000 liters of petrol. That’s 45,000 multiplied by 2,000; you can easily calculate the millions of liters that are now in backlog," Ukadike said, shedding light on the extent of the disruption.
The backlog translates into millions of liters of petrol stuck in the supply chain, with each truckload of 45,000 liters costing around ₦39.5 million. When multiplied by the 2,000 pending orders, the total outstanding value reaches approximately ₦79 billion. This backlog is not just affecting availability but also creating financial bottlenecks for marketers, further straining an already delicate supply chain.
Ukadike also warned that the extended closure of the purchase portal is leading to bottlenecks that could trigger another round of widespread fuel shortages across Nigeria. With the portal still inaccessible, it is difficult to confirm current petrol prices, adding to the uncertainty in the market. "I can’t confirm the price now because the portal is still shut down," he added, emphasizing the growing gap between supply and demand.
In response to these concerns, NNPCL spokesperson Olufemi Soneye acknowledged the backlog and explained that the closure of the portal was a deliberate measure. According to Soneye, the decision was made to prevent NNPCL from holding onto marketers’ funds for extended periods while grappling with the supply backlog. "We are aware of the significant backlog. The closure is intended to prevent us from holding marketers’ funds for too long," he stated.
Soneye assured that the company is actively working to resolve the backlog, and once the situation is brought under control, the portal will be reopened. However, he did not specify an exact timeline for when this would occur, leaving marketers and consumers uncertain about when normal fuel supply operations might resume. "The portal will be reopened once the backlog has been sufficiently reduced. We are working to address the issue as quickly as possible," Soneye said, without committing to a concrete reopening date.
This development comes at a time when Nigerians are already grappling with rising energy costs, further exacerbating the economic challenges faced by households and businesses. In September 2024, NNPCL had announced a fresh increase in petrol prices nationwide, following the lifting of the product from Dangote Refinery. The price hike, combined with the current supply disruptions, threatens to make fuel even more expensive and harder to access for ordinary Nigerians, who have long struggled with the impacts of fluctuating fuel prices on the cost of living.
The potential scarcity has raised alarms among both marketers and consumers, with fears that long queues at petrol stations and black-market trading of fuel could soon resurface. As the nation waits for the resolution of the backlog, many are hoping for swift action from NNPCL to prevent another fuel crisis from unfolding.
