Top oil firms urge full deregulation and the removal of subsidies

Leading Nigerian oil and gas businesses have demanded that the downstream portion of the oil and gas industry be completely deregulated.

This was communicated by the indigenous oil companies, particularly those engaged in the African energy market, in Abuja during the sixth Nigeria International Energy Summit (NIES 2023).

They talked at a panel discussion titled “Africa at the Centre of the Global Energy Mix: What’s Ahead in Nigeria,” which focused on sustainable upstream, midstream, and downstream systems as well as a roadmap for the new administration.

The most important component of the Petroleum Industry Act (PIA 2021), deregulation, has not been put into practise, said Mr. Olumide Adeosun, Chief Executive Officer of Ardova PLC.

Adeosun, who is also the head of the Major Oil Marketers Association of Nigeria (MOMAN), expressed disapproval of the suspension of the deregulation in line with Nigerian legislation.

“And especially it relates to the development of a free market where prices are set by supply and demand rather than by the dictates of the government.

“We also speak for the Nigerian Oil Marketers organisation, a professional organisation. We’ve done a lot of the work, but the difficulties we confront are well known.

“Deregulation must take place fully and without delay. A situation where there is just one supplier is no longer acceptable. As we de-regulate, we need to ensure excellent execution.

He argued that the deregulation process must be open, long-lasting, and inclusive of the general public and essential stakeholders.

He continued by saying that when deregulation was put into place, it would lessen oil smuggling, boost downstream investments, and redefine cash durability.

Mr. Tayo Akinwunmi, Chairman, Petroleum Contractors Trade Session (PCTS LCCI), gave a speech on “Building Energy for Tomorrow” and charged the government with implementing technology to enhance the storage system to ensure affordability and sustainability.

In addition to calling for deregulation, Mr. Oladotun Isiaka, Executive Director, Deepwater, Exxonmobil Nigeria, highlighted his displeasure with the sector’s agencies’ major function overlap and misalignment.

According to him, doing so allowed for lapses and gaps and also made possibilities less appealing.

But Mr. Osagie Okunbor, Chairman of Shell Companies in Nigeria, gave the new administration the job of addressing the problems with insecurity in the sector.

“The new administration should not come in to delay the PIA, rather they should find a will power and focus on making it work effectively,” Okunbor suggested. (NAN)