Many petroleum products marketers are currently facing difficulty in obtaining loans needed to finance the lifting of diesel and aviation fuel in larger volumes from the Dangote Refinery. This challenge stems from the recent introduction of a 45 percent Cash Reserve Ratio (CRR) by the Central Bank of Nigeria (CBN).
The increased CRR has allegedly hampered the ability of commercial banks to lend up to N15 billion to enable marketers to purchase petroleum products from Dangote Refinery with cargoes. As a result, products from the local refinery have been slow in saturating filling stations across the country.
Mr. Felix Eribo, Executive Director of Operations at Masters Energy Oil & Gas Limited, highlighted the difficulty his company and other marketers are facing in obtaining adequate funding from banks to purchase large volumes of products with vessels from the Dangote Refinery. The higher CRR has diminished banks’ ability to lend significant amounts of money to marketers, making it challenging for them to flood retail outlets with Dangote products.
Despite the funding constraint, Eribo expressed optimism that his company would overcome the challenge and begin lifting products with vessels soon. He noted that Dangote Refinery had allocated Masters Energy two million litres of diesel three weeks ago, which they are currently lifting with trucks.
Regarding the quality of products from the refinery, Eribo assured that they meet Nigerian standards set by the Department of Petroleum Resources (DPR). He emphasized that customer complaints about product quality have been minimal, indicating that the refinery’s products are meeting expectations.
As petroleum marketers navigate the financial challenges posed by the increased CRR, they remain hopeful of overcoming these obstacles to meet the demand for petroleum products in the market.