Yemisi Izuora
Former minister of state for petroleum resources, Odein Ajumogobia has expressed worry over inconsistency in policy and frequent changes in leadership of the Nigerian National Petroleum Corporation (NNPC).
The minister observed that the situation has negatively affected growth of the downstream of the oil industry.
Ajumogobia said that since 1977 government had appointed 18 different group managing directors (GMD) of the NNPC.
Speaking at the opening of the Oil Trading and Logistics (OTL) exhibition in Lagos today, the former minister said such policy of making rapid changes in such key area has brought about delays and irregular project executions.
He disclosed that between 2007-2010 government has changed four GMD’s and between then and to date about six. GMD’s have come on board.
This he said is not consistent with development and not coherent with policies of government.
He said government should avail itself the expertise of the private sector in policy formulation adding that when concrete fiscal framework is established and enabling environment provided the private sector would have the confidence to invest in the sector.
Also speaking at the event, the GMD of the NNPC, Ibe Kachikwu lamented the absence of the Petroleum Industry Bill (PIB) but said, the corporation will move along with existing laws to restructure the industry.
Kachikwu who was represented by Aisha Katago executive director of the Pipeline and Petroleum Marketing Company (PPMC) a subsidiary of the NNPC, said he is determined to attract the desired investment in the sector.
He said he is succeeding in that initiative by stopping wastages, restructure the corporate center, boost pipeline security and increase efficiency to improve performance and profitability of the agency.
Meanwhile marketers have attributed the current shortage of petrol across the country to non payment of subsidy claims by government.
They said over 70percent of oil marketers have stopped importing fuel because they couldn’t access loan facility from their banks.
Chairman Integrated Oil and Gas Limited,Captain Emmanuel Iheanacho while making presentation at the OTL said banks have halted borrowing to marketers because they default in repaying the loan as when due.
This development,he said,is amply responsible for current fuel scarcity in Abuja and some parts of the country in recent time.
He said it is high time marketers jettisoned borrowing to import fuel for investment in refinery projects in the country.
He said investment in refineries is more enduring and sustainable than fuel subsidy regime whose repayment most times exceed the statutory 45 days.
Speaking further, Iheancho said investment in refineries would also save the nation deluge of product importation as well as boosts its local refining of crude oil.
Iheanacho informed that his company has applied to the Department of Petroleum Resources to construct refinery in the country.
Managing Director of Mobil Oil Nigeria Plc,Mr Adetunji Oyebanjo,emphasised the need for requisite framework to promote the dynamics of the petroleum sector.
Chairman of Oil Trading and Logistics Expo,Barrister Emeka Akabogu,said he would continue to mount increased advocacy for an improved petroleum sector in Nigeria through the forum.