‘Nigeria Over Due For Full Deregulation, Subsidy Removal’

Managing Director of Rainoil, a storage and distribution company, Gabriel Ogbechie, says Nigeria is over due for full deregulation.
Speaking recently on the sidelines of the firm’s 25th anniversary, he said Nigeria cannot continue to spend over N3 trillion as subsidy yearly on one product, while other sectors suffer.
“Nigeria  is ripe for deregulation, hence the urgent need to channel the over N3 trillion that is currently being spent to subsidise petroleum products in the country to other critical areas of the economy needing attention”, he said.
Ogbechie expressed fears over the parlous financial state of the  economy in using huge resources to subsidise petroleum products and called on the government to deregulate the downstream sector to curb wastage and loss.
“The over N3 trillion  being spent to subsidise petroleum products in the country is sheer waste of scarce finance. This can be used to benefit other sectors of the economy that are bleeding from lack of money,” he noted.
Reiterating his company’s commitment to the development of the petroleum downstream value chain, which he noted as critical to Nigeria’s economic growth, Ogbechie said in line with the nation’s energy transition process, Rainoil is making great effort in boosting the economic development with its sterling efforts in ensuring in-country utilisation and deepening of gas penetration.
He added that the company has made significant impact in cleaner energy production and resource efficiency in the manufacturing sector.
He noted that it would key into the Federal Government’s autogas plan, aimed at reducing Nigeria’s dependence on petrol to diversify its interest by adapting to change and innovation to  deepen investment opportunities in storage, retailing and distribution.
According to him, the firm, which started operations in May 1997, has grown to become a dominant player in the industry, providing employmen for about 2,000 Nigerians, and, with over 130 stations, the company is in 26 states.
“We have also recently deepened Liquefied Petroleum Gas (LPG) penetration with the launch of our ultra-modern 8,000MT LPG storage facility in Ijegun, Lagos,” Ogbechie said.
He added that the firm has continued its upward trajectory through strategic planning, innovation and creating a conducive working environment for its employees, including giving back to the society and its host communities through its various Corporate Social Responsibility (CSR) initiatives.
This, he said, included construction of a block of classrooms at Oghareki Grammar School, Oghara, in Delta, distribution of educational materials to students, health care interventions and sports development.