FORMER
Minister of Petroleum and Energy, Prof. Tamunoemi David-West, 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 with Vanguard, 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.
Olubunmi maintained that subsidy has distorted all
the major economic activities that should have taken place in the
country. “I am still at a loss with the concept of the whole subsidy,
what is being subsidised and who are the beneficiaries? But it will be
unwise for the president-elect to remove the subsidy immediately he
takes over the mantle of leadership, as such an action could force him
into a trap set by the oil cabals.
“Notwithstanding, Gen. Buhari will
have to do a complete evaluation of the sector to properly understand
areas of non-performance and take appropriate action,” he added.
Vanguard