Petroleum marketers, refiners, and depot owners in Nigeria have called for the full deregulation of the downstream oil sector, seeking to end government price controls due to subsidies.
The call was made during a webinar on Wednesday, themed ‘Optimising the Nigerian Oil and Gas Industry’, which brought together key stakeholders from various sectors of the oil and gas industry.
In a communique released after the webinar, participants emphasized the need for full market deregulation, stating, “A market-driven pricing mechanism was advocated to promote competitiveness and operational efficiency.”
The stakeholders also emphasized the need to support local refineries, transition towards cleaner energy sources, and establish a new committee structure in the petroleum sector.
They proposed the establishment of a Midstream and Downstream Industry Coordination Committee, an Industry Interface Committee, and a Petroleum Industry Consultative Assembly to enhance collaboration and regulatory compliance.
The oil sector investors advocated for significant investment in infrastructure, adoption of new technologies, and implementation of sustainable practices to align with global sustainability goals.
They also called for a clearer and more supportive regulatory environment, referencing the Petroleum Industry Act and its provisions, to facilitate easier licensing, investment, and refinery operations.
The webinar highlighted Nigeria’s potential to become a significant producer of plastics and petrochemical products, leveraging the country’s abundant natural gas resources.
The stakeholders committed to working collaboratively towards optimizing the Nigerian oil and gas industry, emphasizing strategic investments, policy reforms, and innovative practices that align with global standards and sustainability goals.
