Expert Wants Total Deregulation Of Downstream Sector

The Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf,  has called for total deregulation of the downstream sector to boost effective service delivery in the oil and gas industry.
Yusuf made the call at a media   forum in Lagos, recently, while assessing President Muhammadu Buhari’s two-year administration.
Yusuf said that many problems confronting the industry were policy related and this had made the potentials in the industry unlocked.
He said that policy issues, as far as the oil and gas industry was concerned, had to be addressed quickly in the bid to diversify the economic base.
According to him, it is important to address the problem immediately so that “we do not go back to another subsidy crisis”.
“We have a lot of potential in that sector, but have not been able to unlock it because of issues surrounding oil and gas policies.
“So, while we talk about diversifying the economy, we need to sort out the challenges within the sector.
“This will help the country get the best in terms of investment, jobs and foreign exchange.
“We are losing a lot because of the way the sector is being managed,” Yusuf said.
The LCCI boss said that the country ought to have been exporting refined petroleum products to neighbouring countries, not importing.
According to him, the government talks about diversifying the economy, yet the opportunities in the oil and gas have not been fully tapped.
“The downstream sector of the oil and gas industry is in pains. As I speak with you now, subsidy claims is about N500 billion which has not been paid.
“Private investment is not coming to that sector due to excessive regulations.
“Deregulation may not be politically popular, but the government cannot continue to fix a price for a product it has no control, he said”.