Marketers Seek Repairs of 21 Depots as NNPCL Spends ₦478bn on Private Facilities

[toluwalopesong]

Marketers Seek Repairs of 21 Depots as NNPCL Spends ₦478bn on Private Facilities

Oil marketers have called on the Nigerian National Petroleum Company Limited (NNPCL) to prioritize the repair and rehabilitation of 21 government-owned depots across the country. This appeal comes amid reports that NNPCL has spent ₦478 billion on private depot facilities for product storage and distribution. Marketers argue that reviving the government-owned depots would reduce operational costs, ensure equitable product distribution, and stabilize the downstream sector.

The marketers, under the aegis of the Major Oil Marketers Association of Nigeria (MOMAN) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), expressed concerns over the continued reliance on private depots. They emphasized that this approach increases the cost of petroleum products due to additional logistics and storage fees. A MOMAN representative stated, "The repair of these depots will not only reduce costs but also improve efficiency in product distribution, especially in remote areas."

The depots, which are strategically located across Nigeria, have remained non-functional due to neglect, vandalism, and lack of maintenance. These include depots in Lagos, Port Harcourt, Warri, and Kaduna, among others. According to industry experts, the rehabilitation of these facilities could save the country billions of naira annually and reduce the pressure on private depots.

In response, NNPCL has acknowledged the challenges facing the downstream sector and reiterated its commitment to addressing them. A spokesperson for the company noted that plans are underway to assess the state of the depots and develop a roadmap for their rehabilitation. However, the spokesperson also highlighted the significant financial investment required to restore the depots to full functionality.

The marketers further urged the Federal Government to support NNPCL in securing the necessary funding for the repairs. They also called for a collaborative approach involving public and private stakeholders to ensure the long-term sustainability of the sector.

The ongoing subsidy removal and rising fuel prices have intensified the need for a more efficient distribution network. Marketers believe that repairing the depots will help mitigate the impact of these challenges on Nigerians by ensuring steady supply and fair pricing of petroleum products.

As the country continues to navigate its energy transition, stakeholders have emphasized the importance of addressing the structural issues within the downstream sector. The repair of government-owned depots is seen as a critical step towards achieving this goal.