Deregulation is solution to Nigeria’s oil crisis – Olawore

Obafemi Olawore, former executive secretary, Major Oil Marketers Association of Nigeria has once again emphasised the need for Nigeria to deregulation its petroleum industry to address the myriad of issues besetting the sector.

Olawore said this in Lagos recently at the sent-forth dinner held on his behalf by MOMAN that had in attendance Akin Akinfemiwa, former chairman and chief executive of Forte Oil and Clemnt Isong the new executive secretary as well as other heads of major oil marketers in the country.

 Olawore said the over $2 billion oil subsidy claims owed oil marketers  has forced members of the association to shut operations while urging the government to settle their claims before the Assets Management Company of  Nigeria (AMCON) takes over, according to a press statement made available to BusinessDay.

 He stated that the difficulties in recovering their money from the government was why many oil marketers have left the country, citing Forte Oil’s recent notice to divest from some of its investments, following Mobil, Chevron, and Texaco’s sale of their holdings.

“Subsidy is not free money as some erroneously believed as those who came in to profit have left, leaving the space for real players who believed in what they are doing and despite reconciliation and various meetings called to know when the debt will be paid, nothing is forthcoming from the governments side”, he said.

 He said against the backdrop of reservation on deregulation in the country by a segment of the citizenry, deregulation was indeed in practice in Nigeria between January to July 1999, as the Nigerian National Petroleum Corporation (NNPC) did not import any litre of petrol and the time was found to be successful with the citizens need met by the oil marketers.

 Olawore, with over twenty years experience at MOMAN, said the goal of the association is to have a free market oil industry with all the qualities inherent that will allow free entry and exit without government interference but provision of only regulatory framework.

“Deregulation of the oil industry with strong regulators will allow for participation of real investors in the sector as from the time of Ibrahim Babangida, we have been clamouring for deregulation and it is sad that Ghana that came here to study how Petroleum Product Pricing Agency (PPPRA) work have gone back to their country, set up their own agency for product pricing and have deregulated, so what’s our excuse?

“MOMAN’s goal will be achieved when we have a free market as no one will be owed then and all will work optimally with forex issue not arising as this has left so many oil marketers almost bankrupt though the situation is okay now,” Olawore added.

 He said his joy with other like minds was in setting up an association of major oil marketers in the country from scratch into a strong body guided under corporate setting that always have an input in governments decision concerning the oil industry and they do not sit down to fix oil prices but let government and market forces to determine the pricing to be adopted.