TUC Wants Review Of Downstream Sector

The need for a  wholistic review of the downstream sector of the Nigeria Oil and gas industry through the passage of the Petroleum Industry Bill (PIB) has been stressed.

Chairman, Trade Union Congress (TUC), Rivers State branch, Comrade Chika Onuegbu who made the assertion in an interview with The Tide in Port Harcourt recently said the current practice of importing refined petroleum products was not in the short or longterm interest  of the country.

Comrade Onuegbu urged the federal and state governments to facilitates the passage of the PIB to provide a conducive and enabling environment that would encourage private sector participations in the refining of petroleum products and investment in the entire value chain of the downstream.

His words: “We think federal and state governments should instead of lobbying the lawmakers to support the proposed removal of fuel subsidy, they should deploy more lobbyists to the National Assembly for the PIB to ensure its passage.”

Deregulation of the downstream sector means equal access by all refiners, both private and public to unsubsidised crude oil which means freedom of importation of crude oil with or without waiver of import duty.

According to a report, deregulating the downstream would create room for the emergence of new players in the sector thus inducing competition and improving operational efficiency among players thereby encouraging bureaucracy and patronage with corruptive tendencies.

Also, the enabling environment that will be created by the deregulation would result in the massive importation of petroleum products leading to stability in the product supply situation.

The competitive pricing of products that would exist as a result the report added would be of benefit to consumers, especially in respect of provision of services and offer opportunities for viable cross border trade while ensuring foreign  exchange earnings for indigenous companies.

Vivian-Peace Nwinaene