Participants at an online workshop organised to review key issues that require urgent reforms in the oil and gas industry amid the COVID-19 pandemic have called on the Federal Government to, as a matter of urgency, provide a legal or policy framework that backs the pronouncement by the Group Managing Director (GMD) of NNPC on subsidy removal in order to prevent a possible reversal in the future
The workshop also called for an accelerated passage of the Petroleum Industry Bill (PIB)
The workshop organised by the Centre for Transparency Advocacy (CTA) drew participants from various Civil Society Groups as well as the media.
In a communique signed by CTA Executive Director, Ms Faith Nwadishi, the participants stressed that they are hopeful that the reform actions suggested during the workshop, if taken, could send a strong positive signal to the world, and also ensure that the oil and gas industry is properly positioned to stimulate a rapid recovery of our economy in the post Covid-19 period
The participants said subsidy removal, deregulation of the downstream sub-sector; and acceleration of the submission, passage, and assent to the PIB are urgent reforms needed.
It argued that the Federal Government should make clear its plan to midwife the transition to a zero subsidy dispensation which should include how the savings from subsidy would be utilized, how the impact of possible future increase in the pump price of fuel on the poor would be alleviated, and how local refining capacity would be improved.
On Deregulation of the Downstream sector, the workshop recommended that government should seize the current opportunity of low crude prices to deregulate the downstream sector.
The communique reads further, “On the Petroleum Industry Bill: That the urgent need to overhaul the regulatory framework for the oil and gas industry has been further highlighted by the current crisis facing the industry
“That the executive should, without further delay, submit a draft PIB (in whole or in parts) to the National Assembly for consideration. In turn, the National Assembly, when they receive the bill (or bills), should accord it the urgency it deserves by fast-tracking its consideration and passage
“Overall, we advocate that these actions need to be taken immediately in this
period (of lockdown/partial lockdown), as the post-COVID-19 conjecture, from all indications, does not appear favourable.”
