Acting President Yemi Osinbajo has opposed calls for a full deregulation of the country’s petroleum sector.
To the Acting President, a full deregulation of the Petroluem sector will lead to a sharp rise in the price of petroleum products, particularly petrol.
Osinbajo spoke in Abuja at the 2017 Africa Modular Refineries Discussion Organised by the Modular Refineries Association of Nigeria (MRAN).
He said, “There are those who are saying we need to deregulate fully. Why are they saying that? It is because if we do not deregulate, it is not cost effective for those who are producing PMS to sell. At the same time, if you deregulate completely, prices of everything else is going to go up.
“So there are those complications, meaning we got to moderate all those things. Government has to come in at certain extent and this is what is currently going on, at least to try and balance things up. This is because we cannot have, just overnight, another massive deregulation. If you do that obviously, the consequences would be very dire for the economy.”
The Acting President explained that the effects of a sharp rise in the price of petrol will have a serious consequence on Nigerians and the economy.
Osinbajo also chided the government’s involvement for the failure and near collapse of the Kaduna, Warri and Port Harcourt refineries.
Speaking, the Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu noted that at present, Nigeria has a refining gap of about 900,000 bpd to meet the daily national consumption.Please subscribe to our newsletter