Nigeria is experiencing huge queues at petrol stations and a scarcity of fuel as market, vandalism and logistic problems plague the industry.
There are a series of logistics issues as regards the supply chain. But the government and stakeholders are engaging in order to get a solution to these issues. However, we believe that this will be addressed, though it may drag beyond December.
Chief Ukadike Chinedu, The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria
Cocoa traders have reported that the shortage is affecting cocoa operations across both Nigeria’s cocoa-producing regions as costs have spiked, and availability is not guaranteed.
Cocoa activities such as farmers getting to their farms to harvest cocoa, movement of cocoa from the farms to grading centers are hindered by the gasoline shortage, which began last week but has worsened this week.
A Cocoa Trader
There are some reports of the refineries being closed, although others have explained changes in the market regulations around setting the price are responsible for the chaos. The cost of a litre from the government’s recommended NGN 165 to over NGN 200.
Nigeria’s oil minister, Timipre Sylva told Reuters that as early as the third quarter of 2023, Nigeria expects to stop importing petroleum products as they restructure their oil economy.
By the end of December, a refurbished refinery in Port Harcourt, in the oil-producing Niger Delta, will deliver 60,000 barrels per day of refined crude, but this refurbishment, along with issues of pipelines being vandalised, could be contributing to the current crisis.
The country has to import refined petroleum and export crude, but that importation is dependent on only one company with a license, and this has contributed to the scarcity.
Traders are finding it difficult to transport cocoa to the grading centers, there are long queues at filling stations but no fuel to dispense.
Jimoh Akano, a cocoa trader
Sayina Riman, former president of Nigeria’s Cocoa Association, weighed into the debate saying that the shortage of gasoline is impacting the cocoa communities in the South East region
Olusola David, Ayibiowu, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons
