Operators Seek Review Of Framework For Energy Transition

Stakeholders in the Nigerian downstream oil and gas sector are calling on government to review existing regulatory framework to provide incentives for renewable energy projects, and encourage research and development in clean technologies.

This is the position of Major Oil Marketers Association of Nigeria(MOMAN), which sees the newfound commitment to alternative fuels as not only driven by environmental concerns but also by the economic and social benefits associated with a transition to a sustainable energy future.

The chairman of the association, Mr Olumide Adeosun, while applauding the deregulation of the petroleum downstream sector and the unification of foreign exchange rates, noted that, by embracing alternative fuels and renewables, government is not only leading the way towards a greener and more resilient future but also fostering innovation, job creation, and energy security for our country.

As the chief executive officer of Ardova Energy, Adeosun acknowledged that the issues of foreign exchange and fuel subsidy had been addressed, but he stressed that other challenges still needed attention.

RELATED

AMCON Begins Asset Resales, Sells IBEDC For N100bn

8 hours ago

NCAA Names Max Air ‘Most Unresponsive Domestic Airline’ To Passenger Complaints

12 hours ago

Speaking in Lagos on the development in the downstream operations, Adeosun emphasised the need for a sustainable welfare package for citizens.

He highlighted the importance of productivity in the country’s development and called on the government to address issues such as insecurity, increase productivity in the oil and gas sector, and curb the rising cost of food and transportation.

Adeosun also applauded the inauguration of a committee on fiscal policy and tax reforms and appealed to the government to reconsider the 7.5 per cent VAT on diesel, as it would further burden Nigerians, calling for its suspension until the impact of the petrol price increase is overcome.

Adeosun further urged the government to consider subsidies for transportation and tackle challenges such as insecurity, crude oil theft, as well as fuel and power subsidies.

He mentioned that MOMAN members had the capacity to import petrol into the country, and importation licenses are renewed on a quarterly basis, adding that the challenge to importation will be the balanced wind-down of NNPCL imports as the private sector takes the burden while waiting for the onboarding of local refineries.

“The reality is that many of us have importation licenses that have never lapsed. We renew them on a quarterly basis via the NMDPRA portal. Some of us are also importing diesel, so we need these licenses,” explained Adeosun.

To him, “the licenses cover multiple products such as ATK, PMS, and AGO. The regulator will tell you that we need them even when we are receiving products from the Nigerian National Petroleum Company Limited (NNPCL), particularly on the high sea.”

Adeosun also emphasized the need for efficiency in the importation and delivery operations process to offset the shortcomings in forex rates.

“That has often been the case when aligning with the NNPCL operating regime. Efficiency has always been at the forefront, and subsidies will absorb all of that. As for us, we own the vessel, depot, trucks, and retail outlets, so we can afford to optimise efficiency,” clarified Adeosun.