Oil marketers under the umbrella of Oil Marketers Association of Nigeria (MOMAN), Thursday, turned down Federal Government’s invitation to resume petroleum products importation into the country.
Besides, the association, through its chairman, Mr. Adetunji Oyebanji, told participants at the Nigerian Petroleum Downstream Consultative Summit that it was more rewarding and value-adding for the Federal Government to create enabling environment for investment in the oil sector to thrive.
Oyebanji, who is the managing director of 11Plc, maintained that government should make wider consultation per its planned deregulation policy.
The Petroleum Products Pricing Regulatory Agency (PPPRA) on Tuesday, in Abuja, disclosed that permits had been given to several marketers to start importing petrol alongside the NNPC.
Before the downstream oil sector was liberalised in March this year, the NNPC used to be the sole importer of petrol, a task it handled for more than two years.
Since 2017, the NNPC was the sole importer of petrol into the country but that would change as reports say with the liberalisation of the downstream sector in March, this year, the NNPC would no longer be the sole importer of petrol.
Oyebanji said marketers had to shun importation because of the inability of government to refund subsidy claims for three years running.
He added that resumption of fuel importation transcended mere announcements as any move to change the present price control regime must be backed by a law.
He said when the government announced removal of subsidy few weeks ago and followed it up by a statement about deregulation, stakeholders were taken aback as there was no input from them on those issues, saying that marketers needed additional clarity on that.
He said MOMAN fully backs deregulation and wished that subsidy removal was forever.
He said market forces should be allowed to determine prices of petroleum products as done in deregulated economies, adding that it would engender competition, boost investment, and generate jobs as well as providing government with more revenue.
In her remarks, Hajia Amina Maina, Group Chief Operating Officer of MRS Holdings, said government policies had handicapped investments in the depot space of the sector.
According to her, a standard depot costs about N3 to N5 billion and due to low margin and inappropriate policies many investors have abandoned the business.
She noted that with the NNPC taking over 100 percent of import and price determination with little margin for depot owners many have left due to huge bank loans and business takeover by AMCON.
She expressed optimism that investment would grow if government took strong measures to deregulate, especially now that COVID-19 had set businesses struggling.
Speaking, Billy Gills-Harrry, national president, Petroleum Products Retail Outlets Owners Association of Nigeria, advised government to take a strong position on the deregulation exercise to allow more flow of investments in the sector.
Also, Winifred Akpani, MD/CEO of Northwest Petroleum and Gas Company, urged a proper and determined position by government to encourage a wider investments by deregulating the sector.
SOURCE: independent.ng
