LAGOS – Stakeholder in the nation’s economy have emphasised the need for full market deregulation in view of the recent price hikes in petroleum products in Nigeria.
They spoke at a recent webinar hosted by the Major Energies Marketers Association of Nigeria (MEMAN), in collaboration with DAPPMAN, CORAN, ARDA, PETROAN.
The theme of the webinar was: “Optimisingthe Nigerian Oil and Gas Industry
A communique issued at the end of the webinar quoted that a market-driven pricing mechanism was advocated to promote competitiveness and operational efficiency.
According to the communique, the removal of government controls on pricing was seen as essential to foster a more dynamic and responsive industry.
Besides, the discussions underscored the importance of transitioning towards cleaner energy sources, including Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).
The communique said, investments in renewable energy infrastructure and modular refineries were highlighted as critical steps for enhancing domestic refining capacity and reducing reliance on imports.
Participants also said, attracting both local and foreign investments was identified as a priority to support infrastructure development in the sector.
A clear regulatory framework and targeted incentives were seen as necessary to encourage investment and foster growth, the communique made available to Daily Independent said.
A proposal was made for establishing a new committee structure in the petroleum sector, inspired by the Bankers’ Committee in Nigeria.
This structure would include: Midstream and Downstream Industry Coordination Committee: Focused on enhancing collaboration within these sectors, chaired by the Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Industry Interface Committee: To manage interactions between the upstream and downstream sectors, co-chaired by the ACE and the CCE.
Petroleum Industry Consultative Assembly:
It said: “A comprehensive assembly bringing together stakeholders from across the oil and gas sectors, chaired by the Minister of State for Petroleum (Oil).The aim of these committees is to foster collaboration, ensure regulatory compliance, facilitate conflict resolution, and provide strategic oversight, akin to the role played by the Bankers”.
Participants also suggested the creation of industry-wide consultative committees to enhance collaboration, innovation, and conflict resolution. Addressing supply chain inefficiencies and infrastructure deficits was deemed crucial for long-term sustainability.
Emphasising a customer-focused approach, participants highlighted the need to adapt to changing consumer preferences, such as the rising demand for electric vehicles and alternative energy sources.
They also reiterated call for complete deregulation and market liberalization,adding that the benefits include improved efficiency, enhanced product availability, and increased private sector participation.
According to the participants, significant investment in infrastructure is needed to enhance distribution and storage of petroleum products.
The adoption of new technologies was advocated to optimize supply chains, reduce smuggling, and prevent adulteration, the communique quoted.
They emphasised the need for supporting local refineries to decrease dependency on imported petroleum products.
They added: “Freedom for marketers to purchase crude oil from local and international sources and for refineries to enter into processing agreements with retail companies was also proposed”.
They said, implementing sustainable practices, such as reducing gas flaring, promoting renewable energy use, and investing in carbon capture and storage technologies, was emphasized to align with global sustainability goals.
They expressed the need for a clearer and more supportive regulatory environment was stressed, with references to the Petroleum Industry Act (PIA) and its provisions.
Better implementation of policies is necessary to facilitate easier licensing, investment, and refinery operations, they said in the communique.
The webinar also highlighted Nigeria’s potential to become a significant producer of plastics and petrochemical products.
Stakeholders discussed leveraging the country’s abundant natural gas resources to develop a robust petrochemical industry,adding that this would reduce imports, create jobs, and support the local economy.
Besides, emphasis was placed on establishing the necessary infrastructure, such as petrochemical complexes, and adopting policies that encourage local manufacturing and value addition.
The shift toward producing plastics domestically aligns with the broader strategy of industrial diversification and economic resilience, they added.
Stakeholders expressed commitment to work collaboratively toward optimizing the Nigerian oil and gas industry.
Emphasis was placed on the need for strategic investments, policy reforms, and innovative practices that align with global standards and sustainability goals.
The proposed establishment of the Petroleum Committee will serve as a key platform for fostering collaboration and guiding the sector through its ongoing transition.
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