How NASTOGRN is shaping the landscape of Nigeria’s Oil and Gas Industry -By Edwin Emeka Aboh

Following the removal of fuel subsidy by the Federal Government last year, many independent petroleum marketers who experienced low patronage as a result of the high cost of transportation fares across the country decided to shutdown operations, leaving room for only few industry players to operate.

But one unfortunate development witnessed was the fact that the few marketers could not meet the yearning demand of the vast majority of users in the rural areas.

For example, when the government said the official pump price of petrol should be between N617 and N660 depending on the location, it was discovered that those in the rural areas were buying petrol at higher prices because the policy framework of the regulatory agencies did not favour the activities of small and medium scale retailers.

Again, the regulatory agencies pegged the minimum threshold for the issuance of operating license to 33,000 litres but it failed to understand that most retailers were only struggling to stay afloat until last year’s policy pronouncement by the government.

So, those who could not generate enough fund to purchase the 33,000 litres are either allowed to face the crushing harassment of the the law enforcement agencies or fizzle out of the business.

This was the debilitating experience of small and medium scale operators in the industry until the attention of the Chairman, Board of Trustees and National President of the National Association of Surface Tank Oil and Gas Retailers of Nigeria (NASTOGRN), Chief (Dr.) Marcus Okotete was drawn to the situation.

Though NASTOGRN has been solving the various needs of small and medium scale operators in the downstream sector before fuel subsidy removal last year, but the activities of the group became more pronounced following the intervention of the association’s board.

As of today, discussion between the association and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NPRA) as well as the Nigerian Upstream Regulatory Commission (NURC) aimed at reducing the basic requirements for the granting of operating licenses to it’s members from 33,000 litres to 100 litres have reached advanced stage.

The association is also working hand in glove with relevant authorities to make the establishment of tank farms and mini-depots for products storage easy for old and new members.

The association has established a database to ensure the inclusion of all members, both old and new as beneficiaries of any government assisted programme.

The association is also working in collaboration with the Federal Ministry of Industry, Trade and Investments to lower to cost establishing the business in the rural areas as well as encourage the establishment of surface tank calibration and fabrication centres across the federation.

Because of the dogged fight of the Board Chairman and National President of the group, Chief (Dr.) Marcus Okotete, the association has more than 30,000 members in all the 8,812 wards across the federation and it is expected that the number will continue to increase as more people would be joining the group to enjoy legal backings for their legitimate businesses.

Mr. Edwin Emeka Aboh writes from Delta State.