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LequteMan
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Nigeria - Group Managing Director, of Nigerian National Petroleum Corporation (NNPC), Dr Emmanuel Kachikwu, has said Nigeria cannot sustain fuel subsidy, and that the oil and gas sector should be deregulated.
“Deregulation will provide a fair deal for Nigerians from the abundant petroleum resources, through fair product prices for consumers, full cost recovery, and reasonable margins for operators.” he said.
According to him, “Subsidy accounted for 20 per cent of the federal government budget in 2013. Speedy implementation of this policy in Nigeria would go a long way in encouraging inflow of private sector and international investment; ensure that Nigerians derive fair deal from the abundant petroleum resources in the country through fair product prices for consumers and full cost recovery and reasonable margins for operators.
“Subsidy creates distortion in government revenue distribution as a result of round-tripping and unnecessary carryover of expenditures every year in a way that is difficult for government to control or sustain,” he said.
“Removal of price control mechanisms is deemed imperative to ensure full growth of the sub-sector, by allowing private stakeholders to complement the effort of government in developing the industry.” he added.
“However, critical enablers such as security of supply and distribution infrastructure must be assured to guarantee the availability of the petroleum products at affordable prices.
The GMD reassured Nigerians that NNPC would continue to maintain stability in the supply and distribution of petroleum products nationwide.
He stated this in his keynote address titled “Energy Crisis and Sustainable Development in Nigeria: The Way Forward”, at the National Association of Energy Correspondents (NAEC) Conference held at the Eko Hotel & Suites, Victoria Island, Lagos, yesterday.
DailyPost
“Deregulation will provide a fair deal for Nigerians from the abundant petroleum resources, through fair product prices for consumers, full cost recovery, and reasonable margins for operators.” he said.
According to him, “Subsidy accounted for 20 per cent of the federal government budget in 2013. Speedy implementation of this policy in Nigeria would go a long way in encouraging inflow of private sector and international investment; ensure that Nigerians derive fair deal from the abundant petroleum resources in the country through fair product prices for consumers and full cost recovery and reasonable margins for operators.
“Subsidy creates distortion in government revenue distribution as a result of round-tripping and unnecessary carryover of expenditures every year in a way that is difficult for government to control or sustain,” he said.
“Removal of price control mechanisms is deemed imperative to ensure full growth of the sub-sector, by allowing private stakeholders to complement the effort of government in developing the industry.” he added.
“However, critical enablers such as security of supply and distribution infrastructure must be assured to guarantee the availability of the petroleum products at affordable prices.
The GMD reassured Nigerians that NNPC would continue to maintain stability in the supply and distribution of petroleum products nationwide.
He stated this in his keynote address titled “Energy Crisis and Sustainable Development in Nigeria: The Way Forward”, at the National Association of Energy Correspondents (NAEC) Conference held at the Eko Hotel & Suites, Victoria Island, Lagos, yesterday.
DailyPost
