Mr. Olumide Adeosun, CEO of Ardova Plc and Chairman, MOMAN
The Major Oil Marketers Association of Nigeria (MOMAN) is collaborating and closing ranks with Federal government on successful removal of fuel subsidy. This is because there are strong indications that the government is putting in place a clear road map and plans as advocated by MOMAN and other industry stakeholders to ensure that the June 2023 date for the final removal of fuel subsidy is a reality.
The Chief Executive Officer (CEO) of Ardova Plc, Olumide Adeosun, who is also the Chairman of MOMAN had said that the issue of removal of subsidy by the federal government should be treated with urgency.
Speaking at a Panel Season of the just concluded 6th edition of the Nigerian International Energy Summit, with the Theme : “Setting the Agenda for Complete Midstream and Downstream Optimization in Nigeria” the Ardova CEO explained that for the downstream to be investors’ friendly there is the need not to delay the removal of subsidy.
“Because if you don’t rip off subsidy in one goal what happens is classic and you get stuck in the middle and you can’t go forward and you can’t move back and you don’t enjoy the benefits of either. We need to be very bold about the decisions we make today particularly around the hydrocarbon space because it will determine how attractive and bankable our businesses are to the investors” the MOMAN boss advised.
Also speaking in the same Panel Session, the Managing Director of 11 Plc, Dr. Tunji Oyebanji who is also the former Chairman of MOMAN pointed out the need for government draw a clear road map and plans for the removal of subsidy. Adding that the government should continue to step up consultation with the key industry players on every issue bordering the downstream sector of the oil and gas industry.
“We have seen a lot of consultation by the Authority to reach out to us on numerous occasions and regular basis that I think is extremely critical for gaining the confidence of the players in the industry. We cannot have too much of it. We need to do more” Oyebanji said.
He pointed out the need for government to always inform the industry players well ahead of any plan that will affect their operations. Adding that the primary role of the Regulatory Authority is to encourage businesses and putting in place an enabling environment for businesses to thrive. And making investment attractive for investors.
Adding that a level playing field is also needed. According to him a situation whereby the national oil company is a dominant player and if this is not properly managed other players may be edged out of business. “We look up to the Authority to be the one to provide a level playing field” he said.
He recalled how he has been clamouring for a road map in removing subsidy. Oyebanji advised that which ever way or route the government wants to take to remove subsidy there are advantages and disadvantages. “Therefore you need a plan. We all noticed what happened during the redesign of the currency, we don’t want to have such confusion in our industry” he said.
Based on this advocacy by these industry major stakeholders, the federal government has therefore outlined the critical considerations for the removal of subsidy in the next couple of months.
The government has therefore come out to say that the date of removal will be determined by some indices to ensure the removal would not be too hard on the average Nigerians.
Ambassador Gabriel Tanimu Aduda, the Permanent Secretary, Ministry of Petroleum Resources explained this at the press briefing organized to mark the end of the 2023 Nigeria International Energy Summit (NIES 2023).
According to him the government is currently working to ensure that forex is made available for those that would want to import on account of the subsidy removal. According to government there will be a six month uninterrupted supplies as well as various incentives to buffer the effect of removal on the economy as well as the Nigeria citizen.
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