The Lagos Chamber of Commerce and Industry (LCCI) and other members of the private sector have thrown their weight behind government’s deregulation policy.
The position was conveyed by the president, LCCI Asiwaju Solomon Onofowokan while speaking at a recent seminar which was organised by the Petroleum Downstream Sector of the Chamber.
According to him, the need for complete deregulation in the Nigerian petroleum industry is significant and timely considering the vital role the petroleum industry have to play in the development process of the economy.
According to him, the downstream oil sector requires urgent reforms to revitalise it, adding that “the issue of deregulation of the downstream oil sector has become quite contentious and controversial in this country. It means different things to different people but we should separate emotions from facts, and we should take a long term view without losing sight of the sensibilities of the average Nigerian.”
“We certainly cannot continue on the age-long path of business as usual. We need reforms that will reposition the private sector as the driver of the downstream sector. The public sector should play a strictly regulatory role. If this is done, we would be sure of a better injection of private capital and management expertise and this will facilitate a rapid growth and development of the sector,” he said.
The LCCI president alluded to the prevalence of corruption in the current system of public sector-driven petroleum product importation.
“Even the President Umaru Musa Yar’Adua, alluded to the massive corruption that has characterised the sector over the years. It is a system that entrenches a rent economy,” the LCCI President said.
“The question should really not be whether there should be deregulation, but how best should we deregulate. There is no question that the reform of the sector is long overdue. What we should be discussing is the character of the reform,” he added.
Corroborating Onafowokan’s position, the chief operating officer, African Petroleum Plc, Mr. Tunde Falasinnu, argued that deregulation has the potential of impacting positively on the nation’s economy while engendering healthy competition among marketers to the benefit of the consumers.
“Deregulation is a good omen for the industry and I urge all well-meaning Nigerians including the organised labour to accept it for its envisaged positive effects on the nation,” he said.
“I will advise the government to dialogue with various groups, industry stakeholders on implementation modalities and to strengthen the current regulatory framework to check excesses of industry players who might want to be over-zealous.
Discussion about this post