Numerous petroleum product marketers are presently encountering challenges securing loans required to fund the procurement of increased quantities of diesel and aviation fuel from the Dangote Refinery, mainly due to the CBN’s recent implementation of a 45% Cash Reserve Ratio.
It has been noted that the obstacle posed by the raised Cash Reserve Ratio (CRR) has reportedly hindered the capacity of commercial banks to provide loans of up to N15 billion for the purchase of petroleum products from Dangote Refinery along with cargoes by marketers.
The Executive Director of Operations at Masters Energy Oil & Gas Limited, Mr. Felix Eribo mentioned that although they have received offers from Dangote Refinery, they have not begun transporting products in vessels from them due to insufficient funding.
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“We have continued to get the offer but we have not started lifting with vessels, we are just buying with trucks. I was just discussing it with them.
“The problem most of the marketers are having is this bank issue where CBN is making it difficult for banks to extend lending to buy full cargo.
“It’s because of this CRR that they introduced -the 45 per cent CRR. It’s seriously giving banks problems. So, they now have this singular obligor problem. Some of those banks are finding it difficult to cough out N14 billion to N15 billion to give to marketers”, he said.
