Retailers React As FG Reopens Some Filling Stations In Border Communities, Leaves Others Shut

• The federal government has moved to reopen filling stations shut down under President Muhammadu Buhari in 2019
• These filling stations were shut down because of the increase in petrol smuggling activities in the border communities where they were located
• However, the recent decision to reopen some filling stations and leave others shut has come under serious criticism

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

In a bid to clamp down on the activities of smugglers moving petroleum products from Nigeria to neighbouring countries, the federal government shut down over 400 filling stations in border communities in 2019.

This led to undue scarcity of the product, causing a hike in cases where it was available. Reports showed that residents of these border communities bought PMS at N2,000 even when the product still sold around N1,000 in Nigeria.

Responding to the cries of Nigerians in border communities, the federal government recently lifted the embargo and reopened some of the filling stations in border communities.

Retailers have reacted to the government’s decision, complaining about the selective reopening of the filling stations while others remained shut.

FG reopens some filling stations

A statement from the lawmaker representing Yewa North and Imeko/Afon Federal Constituency in Ogun State, Gboyega Isiaka, confirmed that restrictions have been lifted for the sale and supply of petroleum products in communities within 20km of Nigeria’s borders with the Republic of Benin.

Isiaka noted that the decision would bring relief to these border towns including Imeko, Oja Odan, Ilara and Ihunbe, the PUNCH reports.

On the contrary, petroleum retailers noted that the decision would result in more profiteering due to the monopoly enjoyed by the filling stations that have been reopened.

They questioned the rationale behind leaving filling stations closed and preventing Nigerians in border communities from accessing a product that should be sold freely.

Retailers call for the reopening of all filling stations

The Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesman, Chinedu Ukadike, said the continued ban ran contrary to the provisions of the Petroleum Industry Act, which ordered the supply of fuel to all Nigerians regardless of their location.

“It is an aberration to our licences that were given to us by the NMDPRA. The government licensed these fueling stations, and the marketers have spent billions of naira to build these filling stations around these border areas, which are also occupied by Nigerians.

"Fundamentally, their rights have been breached by not allowing them to receive the same fuel supply as other citizens.”

He urged the government to beef up security activities around the borders to prevent smuggling and reopen the stations for continued operations.

Ukadike warned that the forces of demand and supply will put the residents at the mercy of the few filling stations in operation, compelling them to buy at whatever price is offered.

Lawmaker calls on retailers to act responsibly

In his remarks on the floor of the house, Honourable Isiaka called on the filling station operators to act responsibly to justify the trust reposed in them by the federal government.

He noted that advocacy and engagement would continue until the restrictions are removed completely.

Petrol marketers protest as over 400 filling stations remain shut

Legit.ng recently reported that petroleum marketers lamented their losses as over 400 filling stations remained shut for 6 years.

Since 2019, more than 400 filling stations run by independent oil marketers in the border communities have remained shut down due to the federal government's decision to tame smuggling.

With fuel selling for up to N8,000 per litre in neighbouring countries, the Nigeria Customs Service argued that the filling stations would help smugglers move the product out of the country for higher profits.

Source: Legit.ng