Still on deregulation of downstream oil sector

The people who are ganging up against the introduction of the policy in the downstream sector are doing it deliberately to scuttle government programmes in order for them to continue making money as against what the masses of this country stand to benefit at the long run. There is no doubt that at the beginning […]

The people who are ganging up against the introduction of the policy in the downstream sector are doing it deliberately to scuttle government programmes in order for them to continue making money as against what the masses of this country stand to benefit at the long run. There is no doubt that at the beginning of deregulation policy implementation people will feel the brunt, but the gains surpassed the minority views. Broad perception of the programme should be given consideration and priority as it will pave way for new lease of life to majority of Nigerians at the end.

Our elected leaders who know of the benefits that will accrue to the nation are busy playing crude politics and engaging themselves in run-down syndromes at the expense of national development. At the level of our lawmakers who are presumed and supposed to be exposed and enlightened in their inward and outward actions tend to behave otherwise. I am forced to conclude that even the lawmakers themselves have displayed bankrupt knowledge of deregulated economy. Deregulated economy gives room to everybody to participate and surmount any perceived market forces because deregulation leaves people with alternative choices. It encourages open economy where individual plays his/her role without interference and hindrance as against what is operational in Nigeria now. This outward attitudes of the respected and distinguished lawmakers towards deregulation policy of the federal government have lend credence to the saying that, nobody gives what he/she doesn’t have’. It is either our lawmakers do not know and are not ready to admit their failure.

If those who suppose to lead, teach and educate others on the desirability of this policy gang up against it or mount campaign of calumny on downstream oil sector deregulation, judging from their sharp reactions on the floor of the House, one wonders what will be the reactions of those who are not privilege to know the details contain there-in in the proposed Petroleum Industry Bill, PIB. If these people are true representatives of Nigerians, why should they oppose what will bring relief to us at all times while they advance their own individual gains? This piece is not to castigate the lawmakers but to champion good causes for the growth and progress of the nation and to call the attention of the lawmakers to their responsibilities. The negative posture and outburst of some members when the issue of deregulation came up and the comments made by some of their colleagues in the media have shown clearly that, many of our elected representatives are shallow thinkers, bereft of knowledge and have failed to reason beyond primordial and conservative thinking. I am not sure many of them understand the concept   of deregulation in a regulated economy. It is simply to improve the lives of citizenry, whom the lawmakers claim they are representing. So, ganging up should stop forthwith.

National Assembly members cannot prove to be more concerned than vast the majority of us outside the hallow chambers, when we know whose interest they serve and that they are after their personal and individual interests. We are not surprised that many of them engage in discrediting the management of Nigerian National Petroleum Corporation, NNPC and character assassination against those who are championing the smooth passage of the Bill. In the last 51 years of Oil prospecting in this country, there has been no known single Bill or enactment like Petroleum Industry Bill, PIB that is so comprehensive and incorporate all interests including the fears expressed in some quarters.

The concept of Deregulation is nothing but essentially and importantly, the process of lessening the amount of government restrictions, controls, regulations and involvements in the administration of petroleum sector. It is an all-encompassing policy that will make government agency responsible for the administration of Oil sector; in this case, NNPC withdraws it’s over involvement in importation, distribution and marketing of the products. The policy will enable the Corporation to play an oversight function in the industry as against active participation. As it is presently constituted, NNPC is too deeply involved which amounts to over regulation. Deregulation Policy will therefore, affords NNPC to fully monitor the players in the industry [the marketers, distributors and retailers nationwide whether major or minor] through the Department of Petroleum Resources, DPR.  The Bill is a single document or legal framework which when passed into law will smoothen operations in oil and gas industry. Most of the available legislations presently are outdated and archaic, out of tune with what is available in the Oil and Gas Industry worldwide.

What the federal government is spending on the petroleum products refining, importation and distribution in form of subsidy are quite colossal.  On monthly basis, subsidy alone takes about N50billion compare to what goes to critical areas like health, education, power, aviation, water and road. Nothing is wrong with government to subsidizing, but what happen to vital areas that are yearning for total over-hauling? The withdrawal subsidy could be used to fix these infrastructures while Nigeria moves forward and graduate to the enviable advanced economy. This is why every concerned Nigerian has to move against regulation of Oil sector and support deregulation.

In Germany, the natural gas industry has been deregulated over the past ten years.  

Before deregulation, utilities charged their customers for all the necessary steps to get the natural gas from the gas well to the customer’s home or business places. This includes purchasing the natural gas, delivering it to the customer, measuring the customer’s use, providing emergency service, and billing the customer. These are part of what deregulation sets out to achieve in Nigeria. There will be customer-valued system, where operators in the sector will place more priority to the needs of the consumers rather than consumers worshipping the marketers as is operational in Nigeria.   

This piece is contributed by Madam Kikelomo Adigun, no 45, Adebayo Street, Ogba, Ikeja, Lagos state.