The current round of fuel scarcity in Nigeria may be as a result of the fact that importers cannot get the dollars needed to import the commodity.
Also the Nigerian National Petroleum Corporation (NNPC) has not been able to sign agreements quickly enough to exchange crude oil for refined petrol after it canceled previous swap agreements through which refined fuel is imported into the country.
The corporation had recently announced it will begin in March a new swap process called direct-sale direct-purchase to make refined petrol available to Nigerians.
Traders and local sources told Reuters that new fuel bookings have shrunk as importers cannot get the dollars needed to import fuel.
“It has ground to a halt,” one trader said of new petrol fixtures. “Nothing is finalized … so there is literally zero discussion going on.”
NNPC this week issued a statement urging citizens not to panic, or hoard gasoline, seeking to reassure consumers that it has enough in stock. The refineries which NNPC has said will produce around 30 per cent of fuel this year recently suffered hitches as two of them were shut, making Nigeria reliant on imports.