Ifeanyi Ubah, Okoji, others call for fuel subsidy removal over downstream inefficiency

The Senator representing Anambra South, Dr. Patrick Ifeanyi Ubah on Tuesday, joined Cross River North Senator, Oko Rose Okoji and others to urge the Federal government to deregulate the downstream sector of Nigerian economy.


Senator Ubah made the call while speaking on the motion on “Exiting Fuel Subsidy: Ensuring Self-Sufficiency in Domestic Refining of Petroleum Products “, presented by Senator Okoji. According to Senator Ubah who also co-sponsored the motion, citation of 5 domestic modular refineries with a “$1billion support fund” from the Federal Government would eliminate the endemic fuel importation problem being faced in the country.

Dr. Ubah further advocated for invitation of major stakeholders in the downstream sector such as the Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria(IPMAN), Depot and Petroleum Products Marketers Association(DAPPMA) and Department of Petroleum Resources (DPR) to discuss the ideal approach to Liberalization of the downstream sector which can help eliminate the N1.7trillion subsidy payment currently incurred in the process of massive fuel importation.


Speaking further on how deregulation will reduce corruption in the downstream sector, the Anambra South Senator reminded the Senate that it would be very difficult for 10 indigenous companies to collectively engage in any shady deal that can jeopardize their hard earned assets.

Senator Ubah further maintained that if deregulation is implemented in the downstream sector, it  will generate an increased revenue of about three hundred billion naira for Nigeria monthly and  consequently, aid the Government to successfully implement the new thirty thousand naira minimum wage, and will also elevate indigenous marketers from marketing to refining, hereby creating employment, eliminating corruption and increasing efficiency through innovation and healthy competition.


He also noted with dismay the sardonic fact that Nigeria as the “Giant of Africa” still gives crude oil to Coted'voire to refine for the country and emphasized the need to adopt the “Ship to Shore” refinery pattern (which has been adopted by Dangote) as against the “pipeline to refinery” model which has proved ineffectual and disastrous as a result of incessant pipeline attacks and lack of transparency and accountability on the actual amount of crude oil sent and received.