PENGASSAN Hails Deregulation, Warns FG to Ensure Consumers are Adequately Protected

The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Francis Johnson has commended the planned deregulation of the oil sector while warning the federal government to safeguard the commonwealth of Nigerians.

In an interview with Vanguard, Johnson said “Deregulation is a universal economic concept that promotes free market enterprise. When the regulator relaxes regulation and permits market forces to determine the means of production and distribution of an economic product, deregulation is achieved.

“While deregulation is desirable, it must be approached with caution and highest sense of good conscience. For us in the oil and gas industry, deregulation would have been a non-issue if the critical issues of legal, regulatory and fiscal reforms as posited in the Petroleum Industry Bill (PIB) were addressed.

“Today, we are talking about deregulation of the downstream sector of the petroleum industry as a single item whereas what is required is a complete overhaul of both operational and policy frameworks in the industry.

“Some say it is ‘the answer’ but we say it is only an answer. Deregulation is not an end in itself, but a means to an end. If we understand to that level, then part of the problem is solved.

“Our stance has always been to put in place necessary structures that will enable and sustain the policy. When the sector has achieved full deregulation, there will even be a greater challenge than scarcity, namely consumer protection.

“Post-deregulation, the first aspect of the policy that will be most felt is price liberalisation. That is the greater concern for us as a pressure group. It is not enough to deregulate.

“What have we put in place to prevent collusion and predatory tendencies of operators? We do not have strong protection or cover for consumers’ in Nigeria.

“See what we experience daily with service providers, in aviation, telecommunications, etc. We seem to be engrossed with the quest to deregulate the sector, but no one is paying attention to the public utilities, like the pipelines, jetties, depots and even refineries.”