The Independent National Petroleum Marketers Association (IPMAN) has urged the Federal Government to stop its agencies from collecting fees in dollars. Lagos Chairman, IPMAN, Akin Akinrinade, in an interview with New Telegraph over the weekend, alleged that some FG’s institutions were still collecting fees in dollars.
He stated that this was contrary and in defiance of Central Bank of Nigeria’s (CBN) Act, which stipulates that collections of fees in Nigeria must be in naira. He also called on the FG to prevail on commercial banks to make funds available to marketers at low interest rates. He said, currently, interest rates on loans were from 25 per cent to 28 per cent, adding that this was high and inimical to business growth.
The IPMAN Lagos boss also pleaded with the government to improve on security of lives and property. According to him, local refining of crude oil will reduce the cost of petroleum products, including bringing down fuel pump prices. He said that only about three depots were functioning in Nigeria, adding that it was important for the depots and pipelines to be rehabilitated. Akinrinade said: “The major thing to do to improve our operations and businesses is the refinery we are talking about. Let the refinery come on stream and be followed by the depots. For now, in the whole of South Southwest, it is only the Satellite depot that is working and it is not even working well. It is epileptic in its function.
“All the Federal Government’s depots, only about three are functioning. We have the one in Satellite and that one is epileptic in its operation. We have Warri and Calabar. These are the only three depots that are functioning now, although the Satellite depot is epileptic. If the refineries can be put on stream and the deports are working very well, and products are supplied regularly as at and when due, then our operation will be good.
“Also, in terms of pricing, that will, to some extent, bring down the price, in spite of deregulation because there will be competition. When you have good supply, the tendency is for prices to come down. “So, if we get the product at the government price, we would be able to sell it at reasonable price. If the refineries are working, there will be nothing like importation of fuel, so the effect of the dwindling value of the naira would have been taken care of. That would affect our pricing.
“All the port charges that are dollarized, the government should comply with the CBN Act that says that all payments should be affected in the naira. It is an aberration that government institutions are collecting their fees in dollars contrary to the CBN Act. “The cost of the products that we sell now is high. If the government can impress on the banks to reduce the cost of funds to something reasonable, that would be fine. Currently interest rates are in the region of about 25 per cent and 28 per cent. If the banks can bring down interest rates, that would enhance our members’ operations. “Security is another factor. If the country is secured, business will be better and people will feel safe.”
