Operators reiterate need for downstream sector deregulation

Operators reiterate need for downstream sector deregulation

August 28,2019



Operators alongside managing Director of Financial Derivatives Company Ltd, Bismarck Rewane and other operators, has called on the government to urgently deregulate the downstream sector to pave way for accelerated growth of the oil and gas sector.

Rewane, an economist, said the current system is strangulating the sector, noting that deregulation would open up the market.

He charged the Federal Government to emulate other countries who have deregulated their downstream sectors if it hopes to reposition the industry to truly serve as growth catalyst.

Rewane said this during an interaction with journalists on the challenges facing local oil companies listed on the Nigeria Stock Exchange.

According to him, the imposition of a price ceiling on petroleum products which affects the margins of the operators will not attract the volume of investments required to scale up their operations and explore the opportunities in the industry’s value chain.

“A factor affecting the operators is that they do not have control of the pricing of their products, which shouldn’t be as they are at the mercy of others”, he added.

The financial expert admitted that subsidy as a social policy, requires sensitive management.

He, however, said the government must make up its mind to take the bull by the horn to free the industry of its current strangulation.

The International Monetary Fund (IMF) had recently urged Nigeria and other countries subsidizing fossil fuel to put an end to it, noting that the policy benefits the rich more than the poor.

Though the IMF, which stated this in a blog post titled: ‘Fuel for Thought: Ditch the Subsidies’ did not name any country, it is believed that the message was directed to countries like Nigeria whose fuel subsidy has become an avenue for siphoning public resources.

A recent World Bank report said Nigeria spent N731 billion to subsidise petrol consumption last year.

The chairman of the Major Oil Marketers Association of Nigeria (MOMAN) and 11 Energy PLC, Tunji Oyebamiji, also called for the liberalization of the sector to make it attractive for investments.

He said: “Well, we are a competitive industry. We believe in competition. We believe that when you give players in the industry a free hand to go into the market and to compete effectively, it brings out the best in them

“Many of our facilities are out-dated and getting older. We believe that government needs to free up the industry just like it has done in so many other industries. We have seen the massive development in sectors that have witnessed deregulation.”


Location: Lagos, Nigeria

Comments

Post a Comment

Popular posts from this blog

What happened to Orion Acaba: cancer, drug addiction, cheating, critical role drama

Image
What happened to Orion Acaba: cancer, drug addiction, cheating, critical role drama March 30, 2019 Orion Acaba is a famous American voice actor. He is popularly known for his cast role in the Critical Role drama. This actor is all rounded and has the training to do stunts and martial arts, handling firearms and parkour. The star attended The Upright Citizens Brigade Theater which is in Los Angeles. Read on to find out more about Orion! Image: facebook.com, @orionacaba A lot of controversies have revolved around this multi-talented actor. In this article, we will try to answer some of the questions raised by his fan base such as: Why did Orion Acaba leave Critical Role?Is Orion Acaba cheating allegation true?Did Orion Acaba drama cost him his job as a cast of Critical Role? Well, hold on tight and continue reading to find out if some of these questions are rumours or true! Early life and professional career of Orion Acaba Image: twitter.com, @orionacaba The voice actor was bo
Read more

Nigeria election: Nigerians react as APC says Atiku not Nigerian

Image
Nigeria election: Nigerians react as APC says Atiku not Nigerian April 13,2019 Nigerians on the social media have reacted to the claim by the All Progressives Congress, APC, that former Vice President and presidential candidate of the Peoples Democratic Party, PDP, in the just concluded general elections, Alhaji Atiku Abubakar, is not a Nigerian. The APC had yesterday filed a motion at the Presidential Election Petition Tribunal in Abuja stating that Atiku is not a Nigerian. The Party in its petition filed by its lead counsel, Lateef Fagbemi faulted the candidacy of Atiku in the election, claiming that Atiku is a Cameroonian and not a Nigerian citizen. APC, hence stated that the former Vice President’s petition against President Muhammadu Buhari, its own candidate, should be dismissed for lacking in merit. Many Nigerians on Twitter condemned the claim by the ruling party, saying that it does not make sense. Here are some reactions: @tonyakabuno, “After so much time wasted by @
Read more

Tribunal Upholds Elrufai's election as Kaduna Governor

September 09,2019 Kaduna Governorship Election Petition Tribunal Monday upheld the election of the State’s governor Nasir El-Rufai. The Peoples Democratic Party (PDP) and its governorship candidate, Alhaji Isah Ashiru filed an application seeking a recount of the votes cast during the March 9 election in the state. El-Rufai, a candidate of the All Progressives Congress, polled total votes of 1,045,427 to defeat Ashiru who garnered 814,168 votes. The petitioners, however, claimed that the poll was characterised by massive rigging, ballot stuffing, and violence in some parts of the state. But the chairman of the three-man panel, Justice Ibrahim Bako, said the petitioners were unable to prove their allegations of massive rigging and other electoral irregularities against El-Rufai, before the Tribunal. The tribunal also noted that Ashiru and his party did not have any factual evidence to prove INEC did wrong in returning El-Rufai of the APC as duly elected. The petition was therefo
Read more