said that Nigerians should expect sharp drop in petrol price from the
current N87 to about N40 per litre, saying, "the president-elect, Gen.
Mohammed Buhari, will reduce the fuel pump price to N40 per litre."
In a telephone interview withVanguard, the former minister argued that
Nigeria produces millions of barrels of crude oil daily, and if
properly harnessed will boost the performance of the industry.
His words: "I want to assure you that by the time he takes over,
petrol will be dispensed at N40 per litre. This is possible and he has
the credibility to make it work.
The major assignment of the president-elect when he is eventually
inaugurated is to restore confidence to the industry.
He noted that the president-elect is familiar with the petroleum
industry, adding that he is a straight forward person that has respect
for democratic principles.
"As military head of state, he dealt with the Federal Executive
Council with the tenets of democracy. Buhari will build new refineries
to make petroleum products available for the masses. No responsible
government will allow the masses to suffer.
"He will strengthen the refineries within a year. It is possible as we
won't spend any amount in setting up a green field refinery. We
already have a blueprint as we shall use what we have to get what we
want," he added. He further stated that on many occasions, the
president - elect had disclosed that the subsidy initiative is a fraud
which has distorted the progress expected in the sector.
He is also said to have frowned at the spate of corruption, which has
characterised the subsidy regime to include the trillions of Naira
spent on both Petrol and Kerosene subsidy within the past few years,
thus inhibiting efforts to properly carry-out the Turn Around
Maintenance TAM, for the refineries. He added that on countless
occasions, he had argued that the country is forced to pay for scam
carried out by oil cartel.
Also contributing, a UK-based economic analyst, Mr. Seyi Odetola,
noted that the president-elect has expressed doubts on the credibility
of the subsidy claim. He added that there may be the need to
investigate the several claims made by marketers, which will further
reinforce his earlier submission on the subsidy claim.
According to him; "The fact that most filling stations in the country
are now dispensing petroleum products after the presidential election,
despite the threat by major oil marketers to stop selling the product,
in view of the subsidy arrears owed to them by the Federal Government,
indicated that most of the marketers have been benefiting from the
fraud.
Removal of subsidy
He argued that "Where did they get funds to import the product, given
the nature of the forex? If after the presidential election fuel is
still available as if nothing had happened, it is then apparent that
there is no fuel subsidy. "It would be difficult for him, to unitarily
remove subsidy without the proper consideration of the plight of the
major players in the sector.
He will need to re-appraise the cause of inefficiency of the sector."
He further hinted that the president-elect, with his pedigree and
respect for the rule of law, will completely phase out importation by
the time the local refineries are working. This, according to him,
will totally remove subsidy, adding that subsidy as it is presently
constitutes the promotion of corruption and impunity.
"I am optimistic that the president-elect will look into the subsidy
regime as soon as he finally settles down for the business of
governance. He stressed that renewed attention will be given to the
revamping of the four refineries as well as focus on the construction
of new ones."
He concluded that "In the long term, through the confidence that will
be restored in the downstream and upstream sectors, investors will be
encouraged to do business which will stimulate the growth from the
level it is.
On his part, the Director, Strategic Planning, Research Intelligent,
Mr. Olubunmi Martins, argued that the subsidy regime is riddled with
corruption, a sign post of the present administration. He said the
challenge before the industry is the gradual restoration of the local
refineries, which will take care of the local consumption for
petroleum products.
He insisted that if activities at the various refineries are up scaled
up, subsidy will no longer be a major concern in the country. He
however urged the president-elect to scrutinise the various marketers,
as most of the companies were floated solely for the sake of
benefiting from the subsidy regime, thereby snowballing into cartels
that have held the sector back.
--Vanguard
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