Currently, many petroleum product marketers are facing hurdles in obtaining loans necessary to procure increased quantities of diesel and aviation fuel from the Dangote Refinery. This challenge stems mainly from the recent implementation by the Central Bank of Nigeria (CBN) of a 45% Cash Reserve Ratio (CRR).
The elevated CRR has reportedly impeded commercial banks' ability to provide loans of up to ₦15 billion for the acquisition of petroleum products from Dangote Refinery, as well as cargoes by marketers.
Mr. Felix Eribo, the Executive Director of Operations at Masters Energy Oil & Gas Limited, highlighted that despite receiving offers from Dangote Refinery, they have yet to commence transporting products via vessels due to insufficient funding.
"We've been receiving offers, but we haven't initiated vessel transport yet; we're currently purchasing with trucks. The primary issue faced by most marketers revolves around banking constraints, with the CBN's 45% CRR significantly impacting banks' ability to extend lending for full cargo purchases."
"The introduction of the 45% CRR has caused considerable challenges for banks, resulting in difficulties in providing ₦14 billion to ₦15 billion to marketers," he explained.
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