Lagos Chamber seeks full deregulation of oil sector, scrapping of NNPC

Lagos Chamber of Commerce and Industry, a body of organized businessmen based in Lagos has urged the Federal Government to fully deregulate the oil and gas sector in 2013 beyond the removal of oil subsidy and to scrap the Nigerian National Petroleum Corporation. The chamber suggested that in place of the scrapped NNPC, a regulatory body be set up to properly regulate the oil and gas sector. It also said that the government should take bold steps and privatize all the refineries and depots in the country.

The Chamber in its 2012 end of year business environment assessment report signed by its Director General, Mr Mudal Yusuf said that operators in the oil and gas sector have long proposed as the way forward for the industry “Full deregulation of the downstream oil and gas sector beyond removal of fuel subsidy; immediate privatization of all the refineries; petroleum products depots and pipelines. The Chamber is also in favor of the recommendation that a strong regulator, an equivalent of NCC in the telecom sector be installed in the oil and gas sector and the subsequent scraping of NNPC and its affiliates institutions”.

Pipeline infrastructure: NNPC needs N474bn for upgrade

Group Managing Director, Mr. Andrew Yakubu, has said that the Nigerian National Petroleum Corporation needs close to $3bn (N474.15bn) to upgrade its depots and refineries’ pipeline infrastructure nationwide.

In a presentation titled: ‘Energy Industry Deregulation: The Prospects and Challenges of the Economy,’ Yakubu said close to $3bn would be required to upgrade the pipeline infrastructure. The NNPC boss, who was represented by the Group Executive Director and Coordinator, Corporate Strategy and Planning, Dr. Timothy Okon, called for the total deregulation of the energy industry, while also stressing the need to mobilize private sector investment in downstream infrastructure development.

He said the move would stimulate competition across the value chain and free huge resources of government for more productive national development programme.

According to him, incessant vandalism has rendered the Pipelines And Products Marketing Company Limited’s pipelines and storage depots inoperable. He, therefore, stressed the need to secure the pipeline infrastructure using a dedicated strategic national infrastructure protection squad, adding that any offender should be tried in accordance with the provisions of the Petroleum Product Distribution Anti-Sabotage Act, 2004.