Commissioner Wants Deregulation Of Downstream Sector

The Edo State Commissioner for Special Duties, Oil and Gas, Mr Orobosa Omo-Ojo, on Tuesday called for the deregulation of the downstream sub-sector of the nation’s oil and gas sector.
Omo-Ojo told the newsmen in Lagos that the benefits of deregulation far outweighed its demerits and urged the Federal Government to put effective palliative measures in place.
According to him, there is no indication whatsoever on ground that the Federal Government has put in place palliative measures that will drive the deregulation of the downstream sector of oil and gas.
“The subsidy money could be used for other developmental projects like roads, hospitals, schools, transportation, infrastructure, health care for the masses and other social amenities,’’ Omo-Ojo said.
The commissioner urged the government to effectively address the challenges confronting Nigerians before deregulating the sector.
“The Federal Government should allow states to partner with it, to drive the country’s refineries, because some states are operating modular refineries (smaller refineries),’’ he said.
Omo-Ojo said that regulation of the downstream sub-sector had affected the construction of new refineries by private investors.
According to him, “A case study is what is happening at the depot. While the Federal Government has about 21 depots, private investors had built over 60 depots.
“This has helped in curbing storage problems we used to have in the past. “If this arrangement is replicated in the entire downstream sub-sector, it would promote efficiency, transparency, employment and accountability in the entire value-chain, ‘’ he said.
Omo-Ojo said that the Subsidy Re-Investment Programme (SURE-P), an initiative of the Federal Government, should be re-directed to impact positively on the common man.
The commissioner, however, advised that the impact of the SURE-P initiative should be felt at the grassroots.