……Says Trillions will be saved from subsidy removal
The Integrity Youth Alliance has backed the Federal Government initiative to deregulate the downstream sector through market-driven pricing of products to boost the country’s economy.
In a statement in Abuja on Monday, The Alliance National Coordinator, Kelvin Adegbenga noted that after a thorough examination of the economics of subsidizing Premium Motor Spirit for domestic consumption, it was unrealistic to continue with the burden of subsidizing Petrol to the tune of trillions of Naira every year.
“There is no doubt that subsidy was benefiting in large part, the rich, rather than poor and ordinary Nigerians, the statement said.
“We want to advise the Federal Government to roll out the auto-gas scheme, which would provide Nigerians with alternative sources of fuel and at a lower cost in order to alleviate the effect of the pump price increase.
According to Adegbenga, he blamed fuel subsidy for the low refining capacity in the country, noting that subsidy made it impossible to attract the much-needed investments into the refining sector.
The statement read, “We need to free up that investment space so that what happened in the banking sector, aviation sector and other sectors can happen in the midstream and downstream oil sector.
“In addition to attracting investments and creating jobs and opportunities, the deregulation policy would free up trillions of Naira to develop infrastructure instead of enriching a few.
“Deregulation means that the Government will no longer continue to be the main supplier of petroleum products. But will encourage private sector to take over the role of supplier of Petroleum Products.
“This means also that market forces will henceforth determine the prices at the pump. In line with global best practices, Government will continue to play its traditional role of regulation; to ensure that this strategic commodity is not priced arbitrarily by private sector suppliers; a regulatory function not unlike the role played by the Central Bank of Nigeria in the banking sector; ensuring that commercial banks do not charge arbitrary interest rates, the statement concluded.
It will be recalled that the Minister of State for Petroleum Resources, Timipre Sylva, has reiterated the need to deregulate the downstream sector through market-driven pricing of products to boost the country’s economy.
Sylva made this known when he featured at the News Agency of Nigeria (NAN) forum on Sunday in Abuja.
