February 25, 2020

Oil marketers to partner banks on products finance

Oil marketers to partner banks on products finance

By Michael Eboh

Petroleum products marketers, under the aegis of Natural Oil and Gas Suppliers Association of Nigeria, NOGASA, said they have entered into discussions with financial institutions in the country to help finance the Local Purchase Order, LPO, of its members.

Addressing reporters in Abuja, after the group’s National Executive Council, NEC, meeting, National President of NOGASA, Benneth Korie, said the discussions with the banks are already at the final stages, while he expressed optimism that the partnership would commence next month.

According to him, under the partnership, NOGASA members with LPOs for petroleum products purchase would be assisted to get loans from the banks, while the association would supervise the delivery and sale of the products as well as the repayment of the loan.

He said: “We will complete the agreement whereby we will support any NOGASA member that wants to take loan from the bank by going to the bank to possibly stand for him and make sure he gets the loan. If he gets the loan, on our part, we are going to make sure that the product is delivered and the money is paid back to the bank. I am sure that before the end of this month we will conclude with the banks.”

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He further bemoaned the widespread pipeline vandalism in the country, stating that a new strategy was being developed by the group to tackle the menace of pipeline vandalism in the country.

Korie expressed the readiness of the group to support government efforts at sanitizing the industry, especially in tackling pipeline vandalism and petroleum products theft.

He said, “We will complement government efforts in reducing pipeline vandalism. We are in the oil and gas supplier business and we know what to do. We have our men. We will not tell you because you will expose us. When we start, you will see it yourself.”

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He also disclosed that the association would begin to issue waybill to identify members that load from government-approved depots as part of means to stop adulterated products from getting into the market.

“We are not going to depots to extort money from people. We will not collect money from anybody in depot in Nigeria. Though we know others do that to oil and gas suppliers, we will, for now, concentrate on our business,” Korie added.

He further stated that the group would from next week begin full supplies of petroleum products beginning across the country, including in industrial areas, while it would it deploy operational vehicles to all its members to aid in their activities.

Vanguard News Nigeria.