 We're back. It's still the breakfast in Plarsive Africa and of course it's set for a first major conversation. Have you seen the few accused around maybe in your city? For those of us in Lagos, we're experiencing it and it's affecting not just the price of petrol and the price of transportation also affecting the flow of traffic. Well, petrol's kesti hit different parts of Nigeria. On Tuesday, forcing mortars to spend hours on ours at filling stations while battling to get the product. Black marketers are also having a field day. Some are selling a liter of petrol at between 300 to 400 naira in many parts of the country. See, I think that's what they do when it gets to this type of scarcity. Many motorists have been forced to patronize these black marketers as the unplatable alternative was to wait for hours in a queue at filling stations. I made long queues and waiting for hours in Lagos. Some filling stations sold a liter of premium motor spirit we're hearing for as much as 200 naira per liter as against the approved price of 180 to 185 naira to the liter. Transportation costs have also, like I said earlier, gone up in response to the fuel scarcity and parts of the country. Petrol marketers in response to this situation have said that there has been a low petrol supply by the Nigerian National Petroleum Company limited is what they're saying. For some years now the NNPC has been the sole importer of petroleum products into the country. What exactly is going on? I'm glad to say we have joining us to discuss this current fuel scarcity, one of those marketers. He happens to be the National Public Relations Officer of the Independent National Petroleum Markters Association of Nigeria. Chief Chinadu Ukadike, nice to have you on the breakfast this morning. Yeah, thank you very much and good morning to you guys. Let's see the pool in the eye. What is going on? Why are we having the queues returning to filling stations? There are two factors, one is secondary. Why the other one is primary? The primary aspect of the freshcast seal and the other three refineries, they are not refining. For the past two years or three years now they have been obsolete and they are currently undergoing terrible maintenance according to the minister who promised us a few months ago that the refineries will be revamped and the refineries will be thrown at the end of March or April which will produce 70% of petroleum products. But all this we are still very dependent on the protection of petroleum products from outside the country and whatever is the standard influence of importation will definitely affect the domestic price of petroleum products in Nigeria. So that is the problem we are facing. One is secondary, the other one is primary. The primary aspect of it is that we are now importing petroleum products from different foreign countries and that made Nigeria not dependent on petroleum products. So whatever the international market states, whatever the dollar trend is, that is what we will combat in Meira. Although the federal government says they are subsidizing the importation of petroleum product and the billions of dollars and billions of dollars we use to subsidize petroleum products. So how long? That is the social refinery itself. The birth cannot go on good. So many men enough just a few dollars is really affecting the market. All right. So just to get you right, what you're saying chief Ukadike is that the normal thing which we've been having for years, it's the same thing. Even when the fuel was available and we're buying at the regular price from you guys, the marketers. You're saying that that is what is causing the scarcity right now, that the refineries are not working and Nigeria is importing, but the refineries are not working last week, last month. We had fear. Yes, that is what I'm saying. Since we are heavily depending on the potential of petroleum product, whatever that is elapsis or whatever that showcase the supply chain from the international community will definitely affect Nigeria. We are globally aware that for a very long time, almost 2-3 months, marketers who have split through PFI, their products to be supplied by NMPC have not gotten it because there is no other person to take from. They are higher, they are better person for a very long time. They are just waiting for NMPC to give them way ahead or schedule them to load. Those who are pricing in June, July, August, they are still on queue. And these are tank firms and some of these tank firms have been, absolutely they have been idle for some time. We are not going to speak for the poor owners. We also want to tell you that reliably, that some of them have split since July, August, September. They have not gotten the product. We are not going to get the product and send it to their depots, which are located along the river line, that we cannot go with our close to grand buy. That is why you see from the dry side of Nigeria, which is a part of this country. They are almost driving towards the western and the southern part of the country. They are not going to get the product because they are not going to get the produce. The private depot owners can be able to pick their funds from. So that they can be fed from the vessels. The pipeline are no longer working. They are lost to our pipelines. So we cannot be able to pump the product to the pipeline. So you see that the chain of distribution is becoming more tougher, thicker, heavier and even more reasonable. Because the country was designed that after refining, finish refining through their system, that products will be sent to the north without even trucking. So that marketers or transporters can be able to within their depot locality there, take petroleum products within three hours behind the station of this nation. Now in Lagos, you see dreadlocks of tanker drivers moving from Lagos to Kaduna Kano, Abuja. And they cut off in Lokocha. Some of them spent four or five days, six days, before they flood the center. Some of them use alternative routes. Those alternative routes cost marketers a huge amount of money to be able to ensure that their product and the personas and their equipment is safe. So you see that there are variables that are causing some of this little drift in the chain of distribution. So you're saying that the NNPC has failed to supply the market? Yes, they slat from the sufficient period. Because NNPCs normally have two to three months sufficient period. So that if there is any delay in chain of distribution, they will use this problem for the sufficient period to be able to mark up the market until they get supply. This time around, the team has looked at it. And you see how Majira is simply preparing a powering build vehicles, generators, and all of them in the drone product. So there is nothing they can do. It has to show by itself that the generator that is moving up and everything is breathing is that this economy is almost flat breathing. All right, when we look at the supply chain, you just said you don't wait for the product to get finished before you make an order for fresh stock. You actually make the order even when the product is at halfway stage before it gets finished, which is what you're saying that these people pay for the thing before it comes. So why is the NNPC unable to fulfill its obligations or duty as so officially the sole importer of the product? Is there a reason for this? Because this product is being subsidized and the government is trying to as much as possible not to allow corruption to be driven by this SSI. And that is why the government is doing the same by themselves, by themselves, and by the people of Nigeria. When they were doing the lease back, kwee buy back and all the rest of them, there were a lot of corruption and the NNPC and the government decided that they would be so important, they would give contracts to importers to bring this product for them so that they can be able to streamline the exchange of dollar and the international market. So that those who are doing this road profit here, only from exchange of dollar too. So NNPC is just trying to be very, very careful on how they manage the resources and how they manage the transactions. Okay, but what's the reason? This is an excuse that was liberated that anybody who infuses it can be able to import, can go and import. You understand me on the prior market. And most of them are finally so difficult because passing dollar from CBN is becoming very difficult. But 30 days after sales also is another big problem. In fact, the business of importation of petroleum products in Nigeria can be easily done by NNPC management and the federal government themselves because of the intricacies of this false transfer during. So having said, given us the reason why the federal government decided to make NNPCL the sole importer, I want to tell us why is the NNPC unable to supply stock? Well, you know, we have traditionally experienced the last kind. They were also telling me that the problem in Ukraine, the one Ukraine affected the international trade zone and affected the late sum of the ships that were supposed to be battered in Nigeria have paid for battered vessels and they couldn't come. Whereupon we also have this excuse that we imported excessive ethanol in the market and thereby their importers failed them by bringing in products that are not satisfactory but are not satisfied with the PMS. And that one Nigeria has also suffered with the vehicles but nobody else I'm talking to you has been held responsible for these actions and inventions. And today again we are also hearing that because of the lack of moda vessel that progress cannot be able to be found in some of the private land farms. At the end of the day Nigeria has received so far a lot of opportunities and profiteering match and serve also taking these little opportunities to smite to the bank. So you see that is a problem where people don't take responsibilities. We will not be able to sit down here to say that this is the cost or I don't know because some of LFDCs say we interpret the importers but with the importers they decided not to continue to supply them. So I can not appropriately say that because I am not part of that process but sometimes we speculate as marketers too. So you are saying probably it could be an issue of cash flow that has affected a few of the flow. Yes, transaction issues. Alright, maybe government is broken can't pay for the fuel. I will not primarily agree on that. I would also recommend this but I also mean that there is a hiccup in transaction flow and maybe I don't know which one each other. I don't know what the transaction is all about but we know that the moda vessels are the ones to come before to sustain this efficiency period of LFDC. It's not that it's not where that will be found. Market has overpaid in June-July and it's getting to August-October. I have not gotten the approval just recently that I read on the news today that LFDC has at least 160 trucks to Lagos. Is that imaginable? One has three trucks to Lagos so what happened to others of the nation that feeds from Lagos because I know even Potapotia feed from Lagos Kalu, Kaduna, Gumbola they feed from Lagos. So is that one of the six trucks to Lagos Lagos but the police they offer those who come to Lagos to come and take approval from Lagos because Apapa is very health the various tax funds situated and most market are just to preach this excess of scarcity via PFEF drive from Potapot drive from Gumbola drive from Gumbola or Patata Contro to go to Lagos to buy and buy this product and come and sell that to Lagos in fellow zone so also also go to Wari Kalaba deliverant previews to buy petroleum products So when I don't know where is news that LFDC has released one round for six trucks of PMS for Lagos is is that news we asked but then it was on it was after curation last month the NMPC limited came out to tell Nigerians they came out to say that the the country would not experience petroskecity in December and beyond you know if they say December and beyond I will take it that they are even saying no we're not even talking about October, November because that one is not even is not even an issue but of course we're used to the perennial or we wear used to the perennial ember month especially December scarcity and they said this was through their chief financial officer miso umar ajia umar ajia you know said in Abuja last month that they have arrangements to ensure as you get supply for December and beyond this was when they appeared before an ad hoc committee of the House of Representatives on fuel subsidy regime in Nigeria what are your thoughts on on the words and what the NNPC is saying to the public to the national assembly to the media to even you guys in the industry and what the real situation is on ground like we have seen play out now yeah I think there is a lot of real organization in the NNPC PPMC you are aware that recently that NNPC was incorporated as a limited liability companies and they are also going to buy infelization or a brand and restart a jazzy and I also seen that these are some of the administrative bottlenecks that have caused this little scarcity that were just expiating and that because maybe there is a new management on board there is new policies there is new innovations there are new checks and balance it and address of them and there are kind of recommendations in the NNPC management reshuffle and some of the top managers of NNPC as they remove transfer just because of this new restructuring of the NNPC and making it incorporated so that they will be profit oriented so I also believe that that speech was made when NNPC was not incorporated and now that the NNPC has been incorporated I think a lot of things need to be changed and they also need to reaffirm because I also believe that this if you go to the NNPC which is new we granted NNPC with the repranded logo we will be able to give Nigerian the granted delivery of petroleum product and see to leave that Nigerians that suffer like this so I will not be able to avoid tenacity or a statement that was made when NNPC was not a brand where everything was not removed for 100 NNPC was not a limited liability company now there is a limited liability company we are spreading policy statements from them we are spreading re-transfiguration we are spreading trans-transfiguration you know the re-transfiguration of the entire system we will be able to give Nigeria peta service Chief Fukadike how much are you selling petu per liter and your colleagues in your part of the country today because we don't have that mandate to force them to sell so if you go to a tank farm and they are able to say sorry well if you want to put a man in business you need to buy and put a little bit much and they are able to continue to serve the country because I want to go let's say say and tell you that the independent marketing is a little pretty but because we are service-oriented we are almost like medical doctors because we are service-oriented and we will continue to operate our affiliation even sometimes at the loss so you are saying your members are selling as hard as $119 in Pohakot in places like Yes, it's not it depends on what you buy we put a little margin even how much is I am reviewed by the state government okay chief I am going somewhere so in places like Adda, George we have a lot of petrol stations in places like East West Road Abar Road in places like but I got township Atiliri you are all selling at $190 and you are saying this because you are buying it at $183 ordinarily what is the profit margin you normally would have how much were you getting we have as the X depo price attribution says $2,000 says $1990 $1980 and then besides we are giving impendent magic magic pass margin more than $10 or $119 so this year this year sorry chief this year what is the X depo price being normally now normally as I am talking to you know we are buying from the positive depo $184 or $185 no no no I am saying you said you buy between $183 $185 but this year before now normally what should the X depo price be as the X depo price supposed to be $164 PPMZ as the X depo price supposed to be $167.5 but I am looking at this year we are selling at $170 $175.7 because I am talking to you now let us be selling at $177.5 okay so if you if you so it means that you are making just about if you are buying at $183 and selling at $190 though I hear in some parts of what I call they are selling at $200 you know I have my sources I hear some parts of what I call they are selling as much as $200 $210 it means you are making just about $7 Naira profit gain because because we want to remain in business we are not even enough just because we want to because only a drone of this so to power or $35,000 $40,000 is almost over something thousand so so you pay your staffs you pay agency fees and all the rest of them why not even making anything so so for your members who are who are your members who are selling independent marketer make money when products are available not when they are scarce so your members who are selling at $200 and $210 in Podhakot what will you do to them like you say sometimes I will not agree with you that our members are selling up to $290 per liter because I also live in Podhakot I have driven around this when I have not seen any finistation that their price is $200 the least I have seen is one night but I also want to also let you know that for adventure you see that you may be a 30 marketer because some traders may not be able to go to the tank farm to go and dump that which amount of money dump almost a million Naira to make $200,000 Naira not those business drives like that in this country what business drives like that even if you cannot be able to invest $10,000 Naira we know this kind of risk and you make $300,000, $200,000 Naira after a month okay is not business at all all right so we enjoy when the wind that is a free flow petroleum product at the depot we cannot do turnover now if you say finistali this one you say you get another one you need to make your route and service your equipment and the rest of them before you start again okay Chief Fichiridu Kadike we will have to live like that I wish we had more time so we could really go into why the depo owners are increasing their costs when they didn't buy higher from NNPC they are old stock should they be increasing what they are charging from you but we have to live like that thank you so much for your time it's all right no problem it's the thank you very much I'm always there to provide concrete and valuable informations all right Chief Fichiridu Kadike national publicity sexual public relations officer rather of the independent petroleum market as association of Nigeria we'll be right back with more discussions on the breakfast stay with us