NOGASA Warns Of Strike, Urges Nigerian Govt To Stop Dealing In Dollars

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) warned of withdrawal of services from March 1 if Naira is not adopted as the base currency for dealing in petroleum products.

The statement from NOGASA came as it urged the Nigerian government to stop making petroleum-related deals in U.S. Dollars to stem the continued rise in prices of petroleum products in the country.

The Association offers a comprehensive, mutually benefiting interactive and informative network for bonafide suppliers, marketers, distributors and other related enterprises in the sector's business environment.

Speaking at a press briefing in Abuja on Tuesday, the president of NOGASA Benneth Korie said that Nigerians use dollars as the base currency of exchange and trading and noted that the rise in exchange rate was a major challenge to the modular refineries in the country.

"Nobody is talking about diesel again, it is now dollars. The problem we have, we trade and we recognize others without recognizing our own. There is no reason for us to be trading with dollars. The problem we are facing today is as a result of the dollars," he said, Premium Times reported.

He added, "We want to tell Nigerians we, marketers, are going through as a result of dollars and what diesel is doing to us. Stop payments for all petroleum products in dollars. Allow the people to pay in naira, so they should remove this dollar."

Korie expressed his concern over requests by the Nigerian Maritime Administration and Safety Agency (NIMASA) and Nigerian Port Authority (NPA) regarding dollar payments for the services being provided in Nigeria.

He suggested NIMASA and NPA to buy dollars directly from the Central Bank of Nigeria (CBN) if they want, but not to avoid collecting naira.

"What is this problem, if you buy Premium Motor Spirit (PMS) at N 620 for example and you use diesel of N1,700 per liter because it is like the diesel and dollar are going up at the same time, which is wrong," he said.

He noted that to fix these problems refineries must sell refined products in naira currency instead of dollars, explaining that if crude is $80 per barrel, then convert it to naira and sell to Nigerians at the naira rate.

To have a conversation rate, the government needs to tell all Nigerians about the dollar rate rather than the "window forex rate" that is shown on television, adding that the government should tell the rate instead of the black market.

"If the government likes it, let them take the rate of black market rate. I know our budget this year was benchmarked at N750/$, so if the government can maintain it at N750/$ heaven will not fall, inflow or no inflow," he said.

Korie emphasized that this is not the first time when a product valued at N400 is being sold at N800. However, he said that if this continues, then eventually food will also get sold at a dollar rate.

Korie also emphasized the need for standard road infrastructure nationwide as it will reduce the demand for vehicle spare parts, thus lowering the need for dollars to import these parts.