MOMAN Reiterates call for Deregulation of Downstream
The Major Oil Marketers Association of Nigeria (MOMAN) has reiterated its call for
complete deregulation of the downstream subsector of the Nigerian petroleum industry.
Petrol subsidy under the current administration of President Muhammadu Buhari, is scheduled to end by
June. MOMAN noted that subsidy removal needs to happen immediately.
The Chairman of MOMAN, Olumide Adeosun stated this while speaking on a panel at the just concluded 2023 Nigeria International Energy Summit (NIES).
Adeosun, who is the Chief Executive Officer (CEO) of Ardova Plc, noted that for the downstream subsector to be investors’ friendly, there is the need not to delay the removal of subsidy.
He said: “It is around the creation of a free market where prices are determined by the forces of supply rather than by law. We also represent a professional association of major oil marketers’ association of Nigeria. So, we have done a lot of the work but the challenges we face are very well documented.
“Deregulation must happen in full and it must happen immediately. We can no longer have a situation where there is a single supplier. As we are deregulating, we must make sure we have excellent execution.”
According to the MOMAN Boss, “Because if you don’t rip off subsidy in one goal, what happens is classic and you get stuck in the middle and you can’t go forward and you can’t move back and you don’t enjoy the benefits of either.
“We need to be very bold about the decisions we make today particularly around the hydrocarbon space because it will determine how attractive and bankable our businesses are to the investors.”
Also speaking on the panel, the Managing Director of 11 Plc and former Chairman of MOMAN, Tunji Oyebanji, pointed out the need for the government to draw a clear road map and plans for the removal of subsidy.
According to him, the government should continue to step up consultation with the key industry players on every issue bordering on the downstream sub-sector of the oil and gas industry.
“We have seen a lot of consultation by the Authority to reach out to us on numerous occasions and that I think is extremely critical for gaining the confidence of the players in the industry. We cannot have too much of it. We need to do more,” Oyebanji said.
