Fuel Scarcity: Lingering crisis not deliberate attempt to influence, scuttle elections - NNPC - Newstrends
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Fuel Scarcity: Lingering crisis not deliberate attempt to influence, scuttle elections – NNPC

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4 years ago

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Group Managing Director of NNPC, Mele Kyari

In a veiled response to the presidential candidate of the All Progressives Congress (APC), Bola Tinubu, the Nigerian National Petroleum Company Limited (NNPC) yesterday said it stands to benefit nothing by wanting to create artificial fuel scarcity to influence the oncoming general election.
But as Nigerians continue to groan over the lingering petrol scarcity and queues at filling stations, the Major Oil Marketers Association of Nigeria (MOMAN) has said NNPC lacks the capacity to supply and distribute the volume of petrol that would serve all Nigerians.Tinubu had in an outburst during his campaign trail, insinuated that the current problems besetting the country, including petrol scarcity and naira shortages were done to hobble his chances of winning the presidential poll.
But the Group Executive Officer of the NNPC, who spoke on the state-owned Nigerian Television Authority (NTA), argued that the nationwide petrol scarcity was not new and wasn’t targeted at anyone.

According to him, the shortage of the product began in 2022 and had continued intermittently despite efforts to curb it.
He reiterated there was no supply problem in the system, but said the market dynamics in terms of logistics and handling charges have changed, thereby affecting prices.
He explained that to deliver Nigeria’s daily 60 million litres consumption, there has to be at least 1,800 tankers on the road daily which may take up to seven days to get to their destinations. Kyari stated that there’s no scarcity of fuel, stressing that the situation has been further compounded by consumer behaviour and panic buying.

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He highlighted the current attempts to end the fuel queues, stressing that prices would soon crash at the depots to ensure normalcy.
According to him, Nigeria’s current fuel consumption accounts for about 70 per cent of the entire West African sub-region.
The GCEO said while the West African region would have been a huge market, the arbitrage being created by differences in prices was making things difficult for the industry.

“There’s greed across the value chain,” he stated.
Kyari stated that the initial design of the petrol pipelines was such that no truck would move beyond 400km, but that the Jesse fire in Delta made it impossible to pump petrol from Warri to Benin and then Ore.
As for the atlas cove, he said the NNPC was losing 24 per cent of its products due to activities of vandals and had to be shut down, while Port Harcourt to Aba was also losing much before it was shut down.
He added that due to the age of the pipeline and the shallowness of the facilities, it was important to rebuild them under the Build, Operate and Transfer method.“I do not think anybody sits down to orchestrate that there should be scarcity so that it will impact elections and so on. I don’t think it happens that way if it is so. But it is not true because the reality is that these glitches actually started early in 2022.
“It has nothing to do with this election period. Once you have a challenge of this nature, it is a cyclical thing. Once you have this challenge, they continue to come up, and then once you have arbitrage issues, you have this glitch.“Today, our redundancy in terms of petroleum products supply is just three days in this country. Once you have a glitch that extends longer than three days, you need another three weeks to stabilise it. So irrespective of who does what, whatever causes the three-day glitch, it is a nightmare waiting to happen.
“Once we see this glitch, that is why we do everything possible to avoid the glitches from happening. I do not think anyone will sit down and say let us create this so that there will be an impact on the elections and so on.“There is no benefit in it. No one would do this and I can tell you this very clearly that there is no one issue that bothers the president like this. There is no briefing that I do to the president that he does not mention this,” Kyari stated.
He explained said it was impossible to link petrol shortage to the elections, noting that NNPC was doing everything in its power to control the situation.
“Yes, there are a lot of glitches. There are a lot of logistics and nightmares. Greed has come into play. There are cross-border issues that we have to deal with. There are international market situations that you have to deal with,” he said.

Kyari maintained that Nigeria has enough stock in-country, but added that distribution was a major challenge.
“We do not have a supply problem because as we speak now, we have over 28 days of supply even if we evacuate up to 60 million litres of PMS every day. We have a distribution problem that comes up as a result of the shift in the cost of logistics in our business taking fuel from the mother vessels to the terminals into trucks to the fuel stations.

“Several things have changed and we do not have an automatic adjustment system that will resolve this as a result of the fuel subsidy regime we are currently operating in the country. However, fuel subsidy payments are understandable to protect consumers from the vagaries of market forces,” he noted.
In his remarks, the Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), Farouk Ahmed, stated that there’s about 28 days offshore capacity while there’s 12 days onshore, stressing that there has been an increase in charges to move vessels from offshore to onshore from about $19,000 to $60,000 per day in some locations.

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He stated that there have been glitches on the road, including accidents which created huge gaps and by extension, arbitrage. He noted that tens of filling stations that flouted the rules had been shut down.

MOMAN: NNPC Alone Cannot Supply All Petrol Needed by Nigerians

Meanwhile, the Executive Secretary and Chief Executive Officer of MOMAN, Mr. Clement Isong, during a phone chat with THISDAY, explained that the NNPC was challenged by insufficient storage and distribution facilities that would enable it supply products to marketers.
Isong, who pointed out that entrepreneurs needed incentives to participate in the downstream oil and gas supply chain in the country and help address the disruption in supply and distribution, however, assured that the fuel scarcity and queues might ease in few weeks’ time if all the players comply with the rules agreed at the stakeholder meeting held on Tuesday at the instance of the NNPC.
At the meeting held in Abuja, the Chief of Defence Staff, Gen. Lucky Irabor, had told the participants that the government was not handicapped in halting the fuel crisis, threatening to use military sanctions on marketers causing the artificial scarcity and pains on Nigerians.

Also, Kyari had equally stated at the meeting that the challenge was monumental and was taking unanticipated dimensions, maintaining that the issue was not a supply problem.

But speaking with THISDAY, the MOMAN Executive Secretary noted that NNPC had brought all the products the country needs but that most them were offshore, adding that solving the fuel crisis need the cooperation from many operators in the system, with right incentives and right business environment.

 Isong said, “The truth of the matter is that NNPC by itself cannot supply the entire Nigerian market. They have brought all the products the country needs, most of it is offshore. It is challenged. Distribution in the country is such that NNPC cannot bring all of it onshore by itself –use its own facilities and distribute to the Nigeria public. They need cooperation from very many operators in the system.

 “So, it needs the entrepreneurs –people who will go and buy the product, pay for it, hire daughter vessels to go and pick it from the mother vessels and bring them onshore. It needs operators in the market who own depot facilities. Many of the NNPC depot facilities which were connected to the pipelines are either non-functional or insufficient.

“The Atlascove which is connected only by a pipeline system is not functional because people along the pipeline have made holes along the pipelines. The Warri Refinery, Port Harcourt Refinery are not functional but they have depots there, but those facilities are not sufficient. So, it needs to then hire facilities from depot owners along the coast, or depot owners will go and buy from the NNPC vessels and put in their facilities to distribute.”

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He further said the situation also required transporters and entrepreneurs to buy trucks, maintain those trucks and take the products to the filling stations for distribution to Nigerians, maintaining that the situation also requires the filling stations to cooperate and sell the product at the right prices to Nigerians.

Unlike the threats of military sanctions on marketers by Irabor and the Department of State Security (DSS), the MOMAN CEO said, “these are not things you can force people to do. People will only do them if the incentive is right; if the business environment is right, if the return on investment is right. It’s not something you do buy force.”

Currently, according to him, the legal structure in operation in the downstream sector was the Petroleum Industry Act (PIA) but that the downstream market was not operating under that legal structure as petrol prices were still being set by government in breach of the law.

Arguing that if marketers bring the product and were not recovering their costs and that their money served them better elsewhere, there would not be entrepreneurs that would be incentivized to participate in the business.

Isong, who called for a level of volunteerism and incentivisation in the downstream business, added that all stakeholders must come to the table and agree to play their part in the business.

That, he explained, was what the stakeholders’ meeting was about, “it was arriving at what was reasonable for all the players in the supply chain to participate and play their role in the supply chain and to agree the level of incentives that would make them play that role fairly. So, at the end of the meeting, everybody pretty much agreed to abide by the rules as we agreed.”

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According to him, “if those rules are sufficiently incentivising, what we expect is that over the next few days, people will go and start hiring vessels again, which they had stopped hiring, to go and start collecting products from the outside storage to put it through their depots. The trucks that had stop coming or that had gone to other places, will start coming back to do business.

 “And then, it will make sense to sell petrol through filling stations again, rather than selling in jerry cans. Everybody will come to the business and the price will come down because people are properly incentivised to do the marketing in the correct way.”

 He explained that the rules established at the Tuesday stakeholders’ meeting were rules about handling of the product and about maximum cost that could be borne along the supply chain.

 Isong further said, “The vessel cost is much, so we agreed that the vessels must not cost much. The transport cost must not cost much. It’s just an agreement as to the handshake in the supply chain to make sure that everybody plays his role efficiently and properly incentivise or motivate us.”

He, however, assured that if all players cooperate, the petrol scarcity and queues would ease in the next few weeks.

On whether the body language of the federal government was telling them that the government was seriously preparing to achieve the June target for subsidy removal, the MOMAN CEO, said the industry stakeholders and government were basically trying to keep the system going until subsidy removal.

“We are trying to put together a regime that will survive until subsidy is removed. So, to me, the meeting was all positive, positive. It was agreed that if anybody misbehaves, then he is on his own. What happens to him is his fault. Everybody should play by the rules that were freely and openly negotiated on Tuesday,” he added.

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Toyota Urban Cruiser: The Compact SUV Set to Make a Big Statement in Nigeria

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18 hours ago

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November 11, 2026

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Toyota Urban Cruiser: The Compact SUV Set to Make a Big Statement in Nigeria

Toyota Urban Cruiser: The Compact SUV Set to Make a Big Statement in Nigeria

As Nigerian motorists increasingly seek vehicles that combine fuel economy, comfort, safety and the versatility of an SUV, Toyota is positioning the Urban Cruiser as a compelling option in the country’s growing compact sport utility vehicle market.

Designed to deliver the practicality of an SUV without the bulk of larger models, the Toyota Urban Cruiser brings together a 1.5-litre petrol engine, modern connectivity features and safety technologies aimed at making everyday motoring more convenient and reassuring.

Listed on the official website of Toyota (Nigeria) Limited (TNL), the Urban Cruiser represents the Japanese automaker’s offering in the mini-subcompact SUV category, a segment that appeals to motorists looking for a vehicle suitable for urban commuting as well as occasional long-distance journeys.

The model’s appeal lies in its combination of compact proportions, functional design and everyday usability, qualities that could make it attractive to Nigerian professionals, young families and individuals seeking an upgrade from conventional passenger cars.

Engine and performance

At the heart of the Urban Cruiser is an economical 1.5-litre, four-cylinder petrol engine, which Toyota Nigeria identifies as one of the vehicle’s major selling points.

The engine configuration is designed to provide a balance between everyday performance and fuel efficiency, making it relevant to motorists who must contend with rising vehicle ownership and operating costs.

Toyota Nigeria lists both automatic and manual transmission options for the model, giving prospective buyers the opportunity to select a configuration that suits their driving preferences.

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The availability of an automatic option is particularly relevant to motorists navigating congested urban roads, where frequent stopping and starting can make driving demanding.

Beyond its engine and transmission, the Urban Cruiser is presented as a compact SUV designed to offer the elevated driving experience and versatility associated with the sport utility vehicle category.

Exterior design and interior appeal

The Urban Cruiser adopts the familiar SUV styling language, combining a commanding road presence with a compact body structure that makes it suitable for everyday use.

Its design is intended to balance functionality and contemporary styling, offering motorists the visual appeal of an SUV without the dimensions of larger, more expensive models.

Inside, Toyota highlights technology and connectivity as important elements of the vehicle’s appeal.

The manufacturer says the Urban Cruiser allows drivers to connect their mobile devices and access multimedia functions, including audio, hands-free telephone operation, reverse-camera functions and smartphone integration.

Voice-command functionality also enables drivers to interact with selected features while maintaining attention on the road.

These features reflect the increasing importance of in-car technology to modern motorists, particularly younger buyers who expect their vehicles to provide seamless connectivity and convenience.

Safety takes centre stage

Safety is another important feature highlighted by Toyota Nigeria in its presentation of the Urban Cruiser.

The vehicle incorporates Toyota’s Total Effective Control Technology (TECT) body structure, developed to help absorb and disperse impact energy in the event of a collision.

This structural approach is designed to enhance occupant protection by managing the forces generated during an accident.

The model also features an Anti-lock Braking System (ABS), which helps drivers maintain steering control during braking, particularly on slippery road surfaces.

These safety provisions underline the manufacturer’s emphasis on combining driving convenience with occupant protection.

For Nigerian motorists, who frequently encounter varying road conditions, unpredictable traffic situations and changing weather, safety technologies remain important considerations when choosing a vehicle.

A proposition for Nigeria’s changing automotive market

The Urban Cruiser’s positioning comes at a time when affordability, fuel consumption and maintenance considerations are increasingly influencing vehicle purchasing decisions in Nigeria.

With the cost of acquiring and operating vehicles remaining a major concern for many households and businesses, compact SUVs offer an alternative to larger sport utility vehicles for buyers seeking a combination of practicality, comfort and manageable proportions.

The Urban Cruiser’s 1.5-litre engine could therefore be an important consideration for motorists seeking a relatively modest engine capacity without sacrificing the SUV experience.

Its compact configuration also makes it relevant to city driving, where manoeuvrability and ease of handling are important advantages.

However, its appeal will ultimately depend on factors such as acquisition cost, availability, financing arrangements, fuel consumption under Nigerian driving conditions and the cost of routine maintenance.

Toyota’s dealer and after-sales advantage

Beyond the vehicle itself, Toyota’s established presence in Nigeria offers an important consideration for prospective buyers.

Toyota (Nigeria) Limited, trusted  distributor of Toyota Motor Corporation in the country, operates through seven accredited dealers.

The company identifies Elizade Nigeria Limited, R.T. Briscoe (Nig.) Plc, Omoregie Motors, Germaine Auto Centre, Kojo Motors, Mandilas Motors and Metropolitan Motors Limited as members of its accredited dealership network.

Its after-sales infrastructure comprises a service centre in Lagos, a parts depot, vehicle diagnostics, mobile workshop services, body and paint facilities and genuine spare parts distribution, among others.

The availability of these facilities is particularly important in a market where access to genuine components, qualified technicians and dependable maintenance services can influence long-term ownership experience.

For buyers considering the Urban Cruiser, the strength of the distributor’s after-sales network could therefore form part of the vehicle’s overall value proposition.

A compact SUV with practical appeal

The Toyota Urban Cruiser brings together several attributes that are increasingly relevant to Nigeria’s changing automotive market: a 1.5-litre petrol engine, transmission choices, modern connectivity, safety provisions and the versatility of a compact SUV.

While its eventual market performance will depend considerably on pricing, availability and customer experience, the model gives Toyota another option for motorists seeking a vehicle that combines everyday practicality with contemporary SUV styling.

As competition intensifies in Nigeria’s compact SUV segment, the Urban Cruiser will be judged not only by its design and equipment but also by how convincingly it delivers on the fundamentals of fuel economy, reliability, comfort and ownership value.

For Toyota, the challenge and opportunity lie in translating the Urban Cruiser’s product attributes into a compelling proposition for Nigerian motorists.

Toyota Urban Cruiser: The Compact SUV Set to Make a Big Statement in Nigeria

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After-Sales Support Will Define Future of Nigeria’s Auto Industry – Carloha Marketing Chief

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23 hours ago

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November 11, 2026

By

Felix Mahan, General Manager, Marketing at Carloha Nigeria

After-Sales Support Will Define Future of Nigeria’s Auto Industry – Carloha Marketing Chief

As competition intensifies in Nigeria’s auto industry, after-sales support is becoming a key driver of customer loyalty and brand trust. In this interview, Felix Mahan, General Manager, Marketing at Carloha Nigeria, examines why reliable after-sales service is critical to business growth, customer retention and the future of the automotive industry:

Felix Mahan, General Manager, Marketing at Carloha Nigeria

Why should automotive companies regard after-sales service as a strategic business function?

After-sales service is central to customer retention, brand reputation and long-term business growth. In the automotive industry, the relationship between a company and its customer does not end with the purchase of a vehicle. Rather, it continues throughout the ownership journey.
A strong after-sales operation reinforces customer confidence, encourages repeat patronage and generates valuable referrals. It also strengthens brand loyalty and differentiates a business in a competitive market. For these reasons, after-sales should be regarded as a strategic investment in sustainable growth, not simply an operational expense.

How does the quality of service delivery influence customer trust and confidence in an automotive brand?

Trust is built when businesses consistently deliver on their promises. Customers expect transparency, timely communication and dependable solutions whenever they require assistance.
While advertising and marketing may attract buyers, their actual ownership experience ultimately determines whether they develop confidence in a brand. A company must therefore ensure that the quality of its service delivery matches the promises made at the point of sale. Ultimately, after-sales performance is what validates a brand’s claims and strengthens its relationship with customers.

What key performance indicators should automotive companies monitor to assess the effectiveness of their after-sales operations?

Automotive companies should pay close attention to service turnaround time, first-time repair success rates, spare-parts availability, complaint-resolution time, customer satisfaction and retention rates.
These indicators provide valuable insights into operational efficiency and the overall customer experience. However, measuring performance alone is not enough. Companies must use the findings to identify service gaps, address recurring problems and implement continuous improvements that deliver tangible benefits to customers.

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Can a strong after-sales service proposition influence a customer’s decision to purchase a vehicle in the first place?

Absolutely. Beyond a vehicle’s features, specifications and price, prospective buyers want assurance that they will receive dependable support after making their purchase.

Felix Mahan, General Manager, Marketing at Carloha Nigeria

A credible after-sales proposition reduces the uncertainties associated with vehicle ownership and gives customers greater confidence in their investment. This is particularly important in Nigeria, where maintenance costs, spare-parts availability and access to qualified technicians remain significant considerations for vehicle owners.
Consequently, the quality of after-sales support can be just as influential as the vehicle itself in determining a customer’s purchasing decision.

What lessons can the Nigerian automotive industry learn from ownership programmes that combine multiple after-sales benefits?

Integrated ownership programmes simplify the customer experience by bringing essential benefits together under clearly defined commitments.
At Carloha, our CarlohaCare 6-6-7 programme is an example. It combines a six-year warranty, six years of free servicing and a seven-day repair promise, subject to applicable terms and conditions.
The broader lesson for the industry is that businesses must move beyond general assurances of quality service and introduce measurable commitments that customers can understand, appreciate and hold them accountable for. Such initiatives help build confidence by giving buyers greater clarity about the support available throughout their ownership experience.

How should automotive distributors respond when competitors introduce initiatives that raise customer expectations and service standards?

They should regard it as an opportunity to improve rather than a threat. Healthy competition should encourage higher service standards, stronger customer protection and greater accountability across the industry.

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At Carloha, we believe customers ultimately benefit when businesses continually challenge themselves to deliver better ownership experiences. The objective should not simply be to imitate what competitors are doing but to raise the standard of service delivery and create greater value for customers.

What role should corporate leadership play in driving improvements in after-sales service?

Leadership plays a critical role because it determines the priority an organisation gives to after-sales and provides the resources required to achieve service excellence. This includes investing in technical training, modern diagnostic equipment, adequate spare-parts infrastructure and efficient service processes. Management must also establish clear accountability structures and regularly assess performance against customer expectations.
After-sales excellence cannot be left entirely to frontline personnel. It must be driven from the highest levels of management and embedded in the organisation’s culture, policies and everyday operations.

What would a truly customer-centred Nigerian automotive market look like?

A customer-centred automotive market is one in which buyers make informed decisions based not only on vehicle prices and specifications but also on the quality and reliability of after-sales support.
Such a market should have transparent warranty policies, dependable spare-parts supply, competent technicians, accessible service centres and clearly defined complaint-resolution procedures.
Most importantly, automotive businesses should be evaluated not just by what they promise before a sale but by what they actually deliver throughout the customer’s ownership journey. That is how the industry can build lasting relationships and earn public confidence.

What specific measures should automotive company boards and executive management teams adopt to ensure that after-sale service receives the attention it deserves?

Boards and executive management teams should make after-sales performance a core business priority, supported by measurable targets, dedicated budgets and direct management accountability.
Customer experience should receive the same level of attention as sales growth and financial performance during management reviews. Companies must recognise that the success of an automotive business cannot be measured solely by the number of vehicles it sells.
Ultimately, the real measure of success is how reliably, confidently and satisfactorily those vehicles serve their owners over time. When businesses understand this, after-sales becomes more than a support function; it becomes a fundamental driver of customer loyalty, brand credibility and sustainable growth.

 

After-Sales Support Will Define Future of Nigeria’s Auto Industry – Carloha Marketing Chief

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Seven Drivers Emerge for Todays Naija Driver Challenge Grand Finale in Lagos 

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3 days ago

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November 9, 2026

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Seven Drivers Emerge for Today’s Naija Driver Challenge Grand Finale in Lagos

 

The maiden Nigerian Drivers Challenge will reach its climax on Tuesday, November 10, with seven finalists set to compete for honours at the National Stadium, Surulere, Lagos, in a contest aimed at promoting responsible driving, professionalism and improved road safety in Nigeria.

The grand finale, scheduled to begin at 9am, follows a nationwide response that saw 160 drivers register for the hybrid competition from 23 states of the federation.

The seven finalists emerged after preliminary assessments, including a proctored online Computer-Based Test (CBT), with participants required to attain a minimum pass mark of 60 per cent.

The final stage will feature practical driving assessments designed by the Lagos State Drivers’ Institute (LASDRI) to evaluate participants’ driving skills, vehicle control, road-use awareness and compliance with safety principles.

The eventual winner will be determined through a combination of CBT performance and practical assessment scores.

Organised to raise driving standards and promote safer roads, the Nigerian Drivers Challenge seeks to draw attention to the critical role of competent, disciplined and professionally trained motorists in reducing preventable road crashes.

The event is expected to attract representatives of government agencies, road safety institutions, automotive industry stakeholders, sponsors, the media and members of the public.

Speaking on the vision behind the initiative, Project Director, Adrian Egonu, said the encouraging response to the maiden edition demonstrated the need for platforms that promote responsible motoring.

“The Nigerian Drivers Challenge was conceived out of a conviction that safer roads begin with responsible, competent and professional drivers,” Egonu said.

He added that the initiative was more than a driving competition, describing it as a platform for raising road safety consciousness, improving driving standards and celebrating excellence behind the wheel.

The Project’s Head of Administration, Modupeola A. Elegba, also expressed satisfaction with the feedback from participants, particularly those who completed the training and CBT stages.

She said the positive responses, including participants’ appreciation of the knowledge gained on safe road use and the competition’s seamless online platform, had encouraged the organisers to expand the initiative in subsequent editions.

The organisers acknowledged the support of institutional partners, including LASDRI, the Federal Road Safety Corps and the Automobile and Touring Club of Nigeria.

Sponsors include Skinetics Aesthetics Skin Care Clinic and Med Spa, BUA Cement, Sovereign Trust Insurance Plc and AXA Mansard Health Ltd, while supporting organisations include the Lagos State Signage and Advertisement Agency, Lagos State Safety Commission, Lagos State Traffic Management Authority and Work and Play.

The public, stakeholders and members of the media have been invited to attend the grand finale.

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