Full Deregulation of Petroleum Downstream Sector -Expert


Get real time updates directly on you device, subscribe now.


Malam  Bello Rabiu , a Former Chief Operating Officer, Upstream of the Nigerian National Petroleum Corporation (NNPC)  says that  full deregulation of the Nigerian downstream oil sector does not stop with removal of subsidies by the government.

Rabiu disclosed this in a report presented at a Media Education series on the Petroleum Industry Bill (PIB) on Deregulation of the Downstream Petroleum sector obtained by the News Agency of Nigeria (NAN) in Abuja, on Sunday.

NAN reports that the Federal government in March 2020 announced the full deregulation of the downstream oil and gas sector.

The Development  which was supported by stakeholders in the industry  brought about monthly  increment in the price of Premium Motor Spirit (PMS) also known as petrol as government removed payment of subsidy to allow market forces to determine the price of petrol.

The price of Petrol since the announcement had increased from N145 to about N170 per litre in various petrol stations across the country.

“Full deregulation is not limited to removal of Government subsidies alone, it will require the creation of competitive market environment which will require the supply of products at commercial prices to consumers.

“Competent players must be allowed to fully participate to grow the market through deployment of technology, good governance and international best practices, ’he said

READ ALSO: Cross River Govt Destroys Over 10 Structures in Marian Market

According to him, unrestricted and profitable investments in infrastructure must be open to all players.

This, he said would be achieved through a level playing field adding that deregulation must allow reasonable earnings to investors.

Rabiu noted that a strong regulator was required to actualise full deregulation of the petroleum sector and not a regulator for price fixing of products.

“A strong regulator is required to monitor and enable transparent and fair competition among players in the industry, ’he added.

He further noted that full deregulation must have effective control of natural monopolies such as pipelines and protect consumers and prevent market dominance.

He called for the passage of PIB to back the deregulation policy with law and to enable Nigerians benefit effectively.

“Full deregulation of the downstream  petroleum sector is a critical National Economic  and Strategic endeavour requiring the support and  cooperation of all stakeholders to implement.

“All hands should be on deck to ensure the attainment of  transparent, competitive efficient and sustainable liberalised  downstream sector in Nigeria,’’ he said

Leave a Reply

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.