By Jeph Ajobaju, Chief Copy Editor
Civil Society Organisations (CSOs) have backed the deregulation of the petroleum industry downstream sector and want support legislation factored into the Petroleum Industry Bill (PIB) soon to be submitted to the National Assembly (NASS).
A consortium of CSOs urged Abuja to repeal the Petroleum Equalisation Fund Act and the Petroleum Products Pricing and Regulatory Agency (PPPRA) Act to show commitment to full deregulation.
The group arrived at the decisions at a one-day webinar, where it also asked the authorities, especially the Central Bank of Nigeria (CBN), to ensure a level-playing field for all importers of refined fuel instead of placing the Nigeria National Petroleum Corporation (NNPC) at an advantage.
A statement issued by Nigeria Natural Resource Charter (NNRC) National Coordinator, Tengi George-Ikoli, implored the NNPC to “take urgent practical steps to reverse the fortunes of the loss making refineries as revealed in its published 2018 Audited Reports of its subsidiaries.
“The refineries remain cost centres that the Nigerian government can ill afford given the impact of Covid-19 pandemic and other fiscal pressures on its economy.”
The CSOs asked the government to create an enabling environment for the private sector to contribute to the efficient running of refineries so that Nigeria can reach its domestic refining goals.
It urged President Muhammadu Buhari to demonstrate his “honest commitment” to deregulation by repealing laws that may hatch back to “a subsidy regime and pre-deregulation state.”
The NNRC said these include the PPPRA Act, the PEF(M)B Act, Section 6(1) of the Petroleum Act, Schedule 1 of the Price Control Act, so as to “demonstrate to the Nigerian people that the ‘declaration of full deregulation’ is merely a statement of intent and not yet honoured.”
It urged Abuja to “commit to the sustainability of the deregulation regime by entreating it in law, either through a stand-alone legislation, or through appropriate clauses integrated into the Petroleum Industry Bill (PIB) that will allow for the sustainability of the no-subsidy regime.
“While we await appropriate legislation, we require the government to clarify the role of the Petroleum Support Fund in the new deregulation regime.
“Clarity is required about how that fund is being managed, whether the over-recovery sums were deposited there and how they are expected to be spent.”
NNRC asked the Ministry of Petroleum Resources to “back up its deregulation policy statement by empowering appropriate agencies, including the Federal Competition and Consumer Council,” to protect consumer interests likely to be abused by profiteering marketers in a deregulated downstream sector.
It urged the government to channel revenue used for subsidy to improve the lives of impoverished Nigerians, and not the rich, by “investing in enablers of economic growth and development such as development of rural roads, education, health services and agriculture.
“If the NNPC must remain a player in the market, it must strive to operate under the same conditions and rules as other players in the sector regulated only by the prevailing market forces and competition.”
The CSOs commended the government for “providing initial regulation to support the deregulation efforts in June 2020,” but said the “government’s engagement with the public on the effects of the deregulation leaves a lot to be desired.
“We encourage the government to ramp up its engagements with the public to improve their awareness and understanding of the deregulation process and all it portends for the Nigerian people.”
The consortium, spearheaded by NNRC, was formed in April 2020.
The members are Civil Society Legislative Advocacy Centre (CISLAC), BudgIT, Connected Development (CODE), Media Initiative for Transparency in Extractive Industries (MITEI), Order Paper Advocacy Initiative, Women in Extractives (WiE), Extractive 360.
Others include Centre for the Study of the Economies of Africa (CSEA), Youth Forum on Extractive Industry Transparency Initiative (Youth Forum on EITI), Publish What You Pay (PWYP), Africa Network for Environment and Economic Justice (ANEEJ).
They also include African Centre for Leadership Strategy and Development (CentreLSD), Centre for Development Support Initiatives (CEDSI), Centre for Transparency Advocacy (CTA), and Koyenum Immalah Foundation (KIF).