Multi-billion dollars worth of investments in the downstream oil sub-sector are trapped by dearth of deregulation, which has pushed annual spending on fuel subsidy to over N1.4 trillion.
Director General, Lagos State Chambers of Commerce and Industry (LCCI), Mr. Muda Yusuf, said that perhaps the biggest burden on the economy today is the petroleum subsidy regime.
Yusuf said the government should encourage private sector players to take over the downstream sector of the petroleum business.
He said: “When this is done, most of the challenges we see as regards subsidy, refineries and others will be adequately addressed. The government should only play a regulatory and not an operational role.
“Government has no business refining petroleum products, retailing or distributing fuel as well as the marketing of these products. We cannot continue to carry that kind of burden in the oil sector,” he said.
New Telegraph, January 9, 2019