The Women in Energy Network (WIEN) said, the ongoing reforms in the downstream oil and gas industry, will open more commercial opportunities in the domestic market.
The group has also applauded the emerging developments in the Nigerian domestic fuel market, especially, the determination of the new administration to activate the relevant sections of the Petroleum Industry Act(PIA) 2021 that relate to market reforms.
The WIEN said, it observed that the sensitive points in the reform process include; removal of fuel subsidy, deregulation of retail prices and liberalisation of play, and expressed excitement at the enthusiasm of President Bola Tinubu to carry out urgent reforms in the critical sections of the economy.
This, the group said, shows that he is prepared and determined to steer the country into the paths of rapid recovery and accelerated growth.
However, it said that, given the poverty level in the country and the strategic economic role of petrol in energising homes and small businesses in the country, the polarization of standpoints among stakeholders on the ongoing market reforms is understandable, normal and expected.
Though WIEN expressed sufficient consideration to the pains and shocks that will inevitably accompany the ongoing reforms in the market, especially with the fuel subsidy removal, it said, the Network is convinced that the decision to permanently address the subsidy imbroglio is well intentioned and purposed to cause the much canvassed reforms in the market.
According to them, “the emerging domestic fuel market is the expected result of over 20 years of strong advocacy mounted by all stakeholders in the economy to dismantle public sector monopoly and guarantee broader opportunity for viable investments in providing the Nigerian business environment with wide ranging fuel options for home, social and business application.”
The group further stated that deregulation of market prices and liberalisation of supply which are key prizes of the ongoing reforms will provide the highly needed congenial atmosphere for implementation of stalled programmes aimed at availing the economy new energy choices like natural gas products for transportation, power generation and industrial application.
“Emerging commercial competitiveness in the market will undoubtedly spur local and international investments in country’s Decade of Gas programme, boost production of new energy forms and solidify Nigeria’s position in the global movement towards low carbon energy. The overall economic benefits in terms of employment, patronage of local goods and services, and ancillary small and medium scale business opportunities would far outweigh the poorly managed fuel subsidy which has created more damage to the economy and actually caused more suffering to the people.
“A deregulated and liberalized domestic fuel market will no doubt save money for government, enhance price competition, promote service efficiency, phase out perennial fuel scarcity and expand the capacity of the market to absorb more investments.” WIEN stated.
The group believes that Nigerians need more opportunities and ambient business environment than they need subsidies to thrive, adding that, this has been demonstrated by the large number of Nigerian youths who have migrated out of the country and succeeded in foreign lands where they are not direct beneficiaries of social security cover.
“We therefore appeal to our Nigerian compatriots to be calm and supportive to the new government as it sorts through strategies to deliver the best economic dividends from the country’s petroleum resources. For instance, reapplication of the poorly managed fuel subsidy funds to creation of enhanced social services, development of facilities and infrastructure and enhanced electricity supply will yield greater impact in the social economy.
“We believe that deregulation and liberalisation are the only way forward for the domestic fuel market in view of the prevailing circumstances. We also call on government to quickly put measures in place to urgently deliver the realisable social and economic dividends of the market reforms to alleviate the impacts on the people.”
