Maintaining petrol subsidy not appropriate for future planning – Major oil marketers
* Says subsidy removal can lift Nigeria from poverty trap
By Udeme Clement :
The Major Oil Marketers Association of Nigeria (MOMAN), and other stakeholders in the downstream oil sector have said that
maintaining petrol subsidy is not appropriate for future planning of the nation’s economy.
The above assertion formed part of the major highlights made at Nigerian Petroleum Downstream Consultative Summit, organised by MOMAN in collaboration with Petroleum Products Retail Outlets Owners Association of Nigeria, Depot & Petroleum Products Marketers Association of Nigeria, ARS Conference Services and Oil Consulting Firms.
The panelists explained that petrol subsidy results in operational inefficiencies, therefore, it is not a sustainable channel to support the future of Nigeria’s economy.
The panelists stressed that removal of price control and allowing market forces, as well as competition to determine prices, especially for petrol will benefit the country and the oil industry.
They said, “Appropriate new legislation needs to be put in place and enforced, as deregulation can be as effective as the legal framework that is in place to guide it.
“We are delighted that government is taking this issue seriously and has taken some important steps. However, we believe that the country will benefit by going beyond the current steps taken.
“This is an on-going conversation with continued engagement with government, as well as other stakeholders, to ensure this process is completed soon to create a win-win situation for Nigerians, government, stakeholders and the Industry”.
On the area of investments, they pointed out,
“Full deregulation is an enabler for private sector investment. The downstream industry requires significant investments to raise the standards along supply chain, from improving refining capacity, pipelines, trucks, depots and filling stations, to supporting ancillary and derivative industries, which will emerge from an improved downstream sector. Investors require attractive environment, devoid of uncertainty.”
On job opportunities, they said, “The survival and indeed growth of the downstream oil industry is important to Nigeria and the citizens, as it provides direct and indirect employment opportunities to millions of people.
“These can be achieved in industrial sector, construction, transportation, station sales/administrative personnel, regulatory personnel and other businesses.
“The downstream sector has a role to play in liberating the economy by saving government from spending trillions of Naira on fuel subsidies.
“The money saved can be used to grow the economy by investing in infrastructure, educating the next generation of Nigerians and keeping the population healthy.
“This in turn will generate revenue for the country, create an avenue for Nigeria to leave poverty trap and emerge as the refining hub for West and Central Africa.”
Also, Oil Marketers made tangible contributions to support government in tackling COVID-19 pandemic, by joining NNPC to equip hospital in Abuja, which will eventually become a world class standard hospital.
The webinar was attended by
Civil Society Organisation; Journalists;
Consulting Firms and participants from