…And legislative backing for new petroleum sector reform
MON, APRIL 20 2020-theG&BJournal- Such a legislative backing for new petroleum sector reform, the Lagos Chamber of Commerce and Industry (LCCI) said, would reconcile the initiative with some extant laws such as those setting up the Petroleum Subsidy Fund (PSF), the Petroleum Product Pricing and Regulatory Agency [PPPRA] and the Petroleum Equalization Fund [PEF].
It also called for clarity on access to foreign exchange for petroleum marketers.
‘Operators (who are currently in a quandary on this matter) are eagerly awaiting guidelines from the Central Bank of Nigeria (CBN) on this critical aspect of access to forex for the importation of petroleum products,’’ LCCI said in a statement made available to theG&BJournal.
One of the reforms recently announced include the ending of the very controversial subsidy which the Chamber described as a game changer for the oil and gas sector and the economy as a whole. It noted that the impact on the economy would be invaluable.
‘’ We are aware that similar attempts to undertake this crucial reform in the past have not been successful. However, we are confident that in the current dispensation, this will not be the case,’’ the Chamber said.
The Chamber also hailed the Nigerian National Petroleum Corporation’s(NNPC) pronouncement on the future involvement of the private sector in the operation of the countries moribund refineries, calling it -‘’another laudable initiative which will ensure that these national assets are put to use for the growth and development of our economy.’’
According to the Chamber, the reform of the downstream oil and gas sector would create a number of advantages for the economy.
‘’It will free resources for investment in critical infrastructures such as power, roads, the rail systems, health sector, education sector etc. The deficit in all of these infrastructure areas are phenomenal. Fixing infrastructure will greatly improve productivity and efficiency in the economy and impact positively on the welfare of the people.
-It will unlock the huge private investment potentials in the downstream oil sector especially in petroleum product refining. This will ultimately reduce importation of petroleum products and ease the pressure on the foreign exchange market as well as the burden on our foreign reserves.
-It will eliminate the patronage, rent seeking activities and corruption that currently characterise the downstream oil sector.
-It will create more jobs for the teeming youths of the country in the downstream oil sector as investment in the sector improves.’’
|twitter:@theGBJournal|email: info@govandbusinessjournal.com.ng|
