. As Sahara Group identifies inadequate refining capacity, others as bane

By Udeme Akpan, Energy Editor

Oil marketers under the umbrella of the Major Energy Marketers Association of Nigeria, MEMAN, have started to swap petrol to tackle the petrol shortage nationwide.

Chief Executive Officer/Executive Secretary of MEMAN, Clement Isong, said: “All are lifting and sharing in swaps to kill the queues. Since last Sunday, a lot has been done to eliminate queues as quickly as possible. Many of our members have been lifting the product.

“We have even put in place an arrangement that enables those without the product to borrow from those that have it.

‘’With this understanding among our members, everyone now has the product to enhance distribution in all parts of Nigeria. We work late every day to end this shortage.”

Similarly, the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, said: “All parties are working to eliminate the queues. If there are disruptions in fuel distribution for two or three days, it typically takes double that time to return to normal.”

Meanwhile, Sahara Group has identified inadequate refining capacity, insufficient storage, and impeded product movement across Africa as the three major impediments slowing the growth of the continent’s downstream oil sector.

In his paper – Africa Downstream Market Developments and Forecast – presented at the just-concluded Africa Refiners and Distributors Association (ARDA) Week 2024 in Cape Town, South Africa, Executive Director, Sahara Group, Wale Ajibade, stated: “Many African countries lack sufficient refining capacity to meet domestic demand, leading to heavy reliance on imports. This lack of self-sufficiency leaves these markets vulnerable to supply disruptions. Addressing this would require fresh investments and collaboration across the sector’s value chain.

On insufficient storage infrastructure, Ajibade said this has continued to hamper the ability to maintain strategic reserves and ensure reliable supply during times of high demand or supply chain disruptions.

According to him, a collaborative solution that involves regulators, operators, investors, financial institutions, and government-owned oil companies is required to help the African downstream sector reach its full potential and provide reliable and affordable energy access to the continent’s growing population.

“Africa’s downstream Market leaders will need to work closely with the various governments and agencies to carefully navigate the complex challenges through regulation and technology adoption while pushing for sustainable growth across Africa,” he said.

He further stated that the continent increasingly relies on imports of refined products to support consumption growth, primarily due to the underutilisation of existing refineries caused by technical issues.