‘Oil Has Blinded Nigeria From Other Sectors’

Though the oil and gas
sector has done well in providing the major part of the fund needed to manage the Nigerian economy, it has also blinded the country from other opportunities  as  agriculture  and full utilisation of mining  potentials which  are  also in abundance have been neglected over the years.
The Managing Director and Chief Executive Officer of Jalz Energy Nigeria Limited, Lois  Machunga, who stated this in an interview  with newmen  expressed  worry  that the huge resources from  oil and gas has not been efficiently deployed to develop other sectors which contribute much potentials to support the socio-economic  life of the nation.
“Almost 80 per cent of it is used as cost  for running the government and if that is the case, we will  never  have  enough capital  to build infrastructure”, Machunga said.
The chief executive officer noted that great  potentials  are not utilised  with opportunities lying fallow and that Nigeria runs an expensive political system with economy that is centrally controlled.
“Even though we claimed to have privatised,  the depth of the impact of privatisation is yet to be felt and is limited to the infrastructure  issues like power supply, water, roads and all the services required,” she stated.
On the Petroleum Industry Bill, (PIB), Machunga  said, “It is neither  here nor there. The  PIB  should   have  addressed sectors ‘ issues,  when  you have  political  issues  in the bill, it brings the parliament  apart  because they don’t have a common interest  or goal for the industry”.
Noting the interplay of interest on the bill, she  said, “there  are several controversial  issues  concerning  the PIB. Interest  parties  have  lobbied against the bill, especially the fiscal  framework. International oil companies think that the benefit they will get may not be as much  as what they are getting now”.
She further disclosed that the 10Cs are against the production sharing contracts signed in 1993 with tax rate  fixed on $18 per barrel of crude oil  which contradicts the present reality today.

Chris Oluoh