Fuel Crisis: 5 Reasons Why Buhari Cannot Stop Fuel Importation

               

The easiest way out of these seasonal fuel crises that we face would have been if we were refining our own fuel locally. Instead, we depend largely on fuel refined and imported from overseas. Our new President, Gen. Buhari will certainly face a difficult task in this area if he assumes office. Here are five obstacles that will hinder him in the attempt to stop fuel importation. If the government can sumount them then fine. At least we will make a headway. Here we go:

1. Our refineries are not yet ready. With a refining capacity of over 450,000bpd that cannot even meet our domestic needs and operating at less than 30% mostly due to machine failure, our refineries are just not ready for the task ahead.

2. Government generates revenue from the process. Am talking about the VAT and other charges levied on imported petroleum products. If we stop importing fuel today, there will be a significant drop in government revenue, and if other sources of government revenue remains constant, our budget deficit will rise, debt profile will rise and the future sufferings of Nigerians will rise. Can you accept that?

3. Significant investments have been made into providing facilities for fuel importation. Am talking about the facilities for transporting fuel to Nigeria, those for moving the products from the vessels into storage facilities, those for administration, etc. People invested money into them. Do you think they will be smiling when an attempt is make to cut off their source of income?

4. Fraudulent oil marketers are benefiting from the process. Those who falsify/doctor their documents just to overcharge the government for subsidy, those who cause unnecessary delays in offloading petroleum products just so it can incure demurage, etc. All of them will come together to frustrate any attempt to stop fuel importation just as generator sellers are doing to our electricity generation companies. If you still don't understand, go and read the PwC report.

5. Risk of unemployment. All those people directly or indirectly employed as a result of the fuel importation business will face the risk of losing their jobs. They are among those praying that we should continue to import fuel.

Additions, subtractions and meaningful observations are welcome.