OIL MARKETERS DEMAND FULL REGULATION….. Says It Will Enable Private Sector Investment

"Full deregulation has a role to play in liberating the economy by saving the government from spending trillions of Naira on fuel subsidies"...... MOMAN.

"For the survival and indeed, the growth of the downstream oil industry, it is important to Nigeria and Nigerians as it already provides direct and indirect employment to millions of Nigerians via the industrial sector, construction sector, transportation sector, station sales and administrative personnel, regulatory personnel and other businesses". 

 

A call for the deregulation of the petroleum industry has been made as it remains an enabler for a private sector investment.

This was the call by marketers operating in the downstream sector in the country recently in Logos state, the commercial capital of Nigeria during the just concluded Nigerian Petroleum Downstream Summit Webinar.

According to the Marketers, the downstream industry requires significant investments to raise standards along the supply chain which also includes, improving the refining capacity, pipelines, trucks, depots, filling stations and supporting the ancillary and derivative industries that would emerge from an improved downstream sector.  

The marketers however, stressed that investors require an attractive environment, devoid of uncertainties. 

Panelists who spoke at the online discussion were Mr. Adetunji Oyebanji, MD 11 Plc and Chairman Major Oil Marketers Association of Nigeria (MOMAN), Dame Winifred N. Akpani, MD/CEO Northwest Petroleum and Gas Company Limited and also the Chairman Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). 

Others at the summit include;

(1). Hajia Amina Maina, Group Chief Operating Officer MRS Holdings Limited,

(2). Mr. Huub Stokman, CEO OVH Energy Marketing Limited,

(3). Dr. Billy S. Gillis-Harry, National President Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN),

(4). Dr. Timothy E. Okon, Managing Partner Teno Energy Resources Limited

(5). Mr. Stanislas Drochon, Head of Africa Strategy and Transformation, PUMA Energy who called in from Johannesburg, South Africa. 

At the summit, the panelists expressed delight that the government was taking the issue of full deregulation seriously and had taken some important steps noting that the country would benefit by going beyond the current steps taken. 

The panelists also, at the event, informed the audience of their full support for government policy on alternative fuels such as CNG.

According to the group of panelists, which included Olatunji Oyebanji, the conversation with government and other stakeholders continues to ensure the conclusion of the process, thereby, creating a win-win situation for Nigerians, the government, stakeholders and, the industry.

They also opined that, maintaining the petrol subsidy (which results in operational inefficiencies and is not sustainable) would not be an appropriate channel to support or plan for the future of Nigeria. 

The panelists however, opined that instead, the removal of price controls, allowing market forces and competition to determine prices, especially for PMS will benefit the country and the industry noting that, appropriate new legislations need to be established and enforced, as deregulation could only be as effective as the legal framework put in place to guide it.

The panelists also stressed that, for the survival and indeed, the growth of the downstream oil industry, it is important to Nigeria and Nigerians as it already provides direct and indirect employment to millions of Nigerians via the industrial sector, construction sector, transportation sector, station sales and administrative personnel, regulatory personnel and other businesses that service and support the downstream, and will provide much more as new industries emerge using outputs from the new refineries and petrochemical industries as inputs and raw materials.

The panelists said full deregulation has a role to play in liberating the economy by saving the 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”, they said. 

"This in turn will generate revenue for the country, creating an avenue for Nigeria to leave the poverty trap and emerge as the refining hub for West and Central Africa”.

  

Speaking further, the body of panelists revealed that, “a total number of 748 people registered for this webinar with a peak attendance of 304 at the same time during the event”. 

The organizations represented includes, government agencies, industry regulators, state governments, market operators, international traders, Civil Society Organizations, members of the press, consulting firms, Colleges and Universities.