Frequently Asked Questions

Shouldn’t Deregulation Be Postponed till Qualice Is Improved For Nigerians?

November 24, 2014 // 0 Comments

To postpone deregulation, even for one day, is dangerous for the products supply and distribution in the country. If we fail to deregulate now, the whole downstream sector of the Nigerian oil industry would collapse and the consequences would be too grave for our fragile national economy and for all of us. Indeed, deregulation is an economic inevitability. Today, the three tiers of government are well funded as a result of improved earnings from crude oil. It is our collective responsibility to [...]

Why Isn’t Government Not Building or Licensing The Private Sector To Operate Refineries?

November 24, 2014 // 0 Comments

The Federal Government had always realised the importance of private initiatives in the refining of crude oil in the country. This was the case in the beginning before government took over the function. Already, 18 companies have been given licenses to establish and operate private refineries, indicating government’s commitment to ensure adequate refining capacity. However, the nation in the interim has to rely on importation because it will take some time before the processes of [...]

Wouldn’t Deregulation Not Further Impoverish Nigerians?

November 24, 2014 // 0 Comments

Frankly, it is the present arrangement that is dynamic in responding to situations. In the past, it was only in Abuja, Lagos and Port Harcourt that products were bought at official prices sometimes. If we agree that a greater majority of Nigerians live outside these few cities, this means that it is only a minority of our people that are the beneficiaries of the highly subsidised products. Deregulation is therefore a policy that will swing the pendulum to the advantage of the majority of our [...]

After Deregulation, Would Petroleum Prices Rise?

November 24, 2014 // 0 Comments

The prices of these products will certainly not be as obtained now. However, the new prices will not be so high as to dig a big hole in the pockets of our compatriots. Remember that the new prices of products will be determined not by government fiat, but by the forces of supply and demand, and by competition. Competition, you know, has a way of forcing down prices. It also has a way of ensuring that companies have a tight rein on production cost such that wastes that could be passed on to [...]

Why Do Oil Smugglers Still Operate Despite Law Enforcement Agencies?

November 24, 2014 // 0 Comments

Nations of the world can only minimize the activities of smugglers. Even in the United States of America, smuggling exists as long as there are financial benefits for the perpetrators. If the nation deploys an overwhelming number of security agents to the borders as suggested, it would not substantially solve the problem. On the contrary, it will only add to the chain of participants. This is the reality. Smuggling will probably continue even after the nation has deregulated its downstream [...]
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