Saturday, November 07, 2009              

No Date Yet for Deregulation, Says Ajumogobia
From Collins Olayinka, Abuja

AS fuel queues continue to emerge in most cities in Nigeria, the Federal Government has again declared that it is yet to take a decision on the take-off date of the deregulation of the downstream sector of the oil and gas industry.

Minister of State for Petroleum Resources, Mr. Odein Ajumogobia who disclosed this to journalists in Abuja, however, assured that the policy would not bring untold hardship to Nigerians.

He said the artificial scarcity being experienced by motorists was due to panic buying and hoarding of the products by some overzealous marketers arising from the rumoured November 1, take off date for the policy.

Ajumogobia said government was still consulting with stakeholders, civil society groups and the Nigeria Labour Congress (NLC) to build consensus. He explained that President Umaru Musa Yar'Adua was favourably disposed to genuine advice and was keen in ensuring that all stakeholders were carried along in the process that would lead to the final decision on the implementation of the policy.

He further said that the same reaction being witnessed should be expected from marketers and motorists any date, whether December or January was rumoured again. The minister therefore assured that government would not hesitate to inform Nigerians through the appropriate channels once consensus was achieved.

Ajumogobia further berated the present regime of importation and marketing of products, describing it as a vicious cycle, which only benefits a few people at the expense of government and the ordinary citizens.

The minister highlighted that government had spent about N600 billion in 2008 and was expected to spend more in 2009 on subsidy which goes directly to this cabal, explaining that the status quo was not sustainable and hence the compelling reason to overhaul the present system to free it of inherent encumbrances, inefficiencies and corruption.

Ajumogobia emphasised that deregulation would allow market forces to dictate prices of products, for more players in the sector thereby leading to efficiency that would positively impact on growth in the entire sector.

He said government would use funds accruing from the removal of subsidy on petroleum products to provide infrastructure in the country.