Between fuel subsidy removal and functional refineries

By Yomi Ogunsanu

Yomi Ogunsanu

Oil sector is one of the critical sectors of the economy which any responsible government must show so much interest in.

As it is today, we need functional refineries that can guarantee constant supply of petrol at affordable prices.

The existing refineries in Nigeria today can no longer serve our interest because of lack of maintenance, occasioned by corrupt practices which have made the refineries to be comatose and almost moribund.

There is nothing wrong if government builds modern refineries that can serve Nigerians, as this will permanently lay to rest the issue of phantom fuel subsidy.

In Saudi Arabia, government owns and operates oil refinery known as SAUDI ARAMCO, which was founded in 1933, with headquarters in Dhahran and has 96000 employees.

In Qatar, the QATAR PETROLEUM is an oil refinery company founded in 1974 with its headquarters in Doha, and owned  by the government of Qatar.

Therefore, the cliche that government has no business in business is not applicable in all cases.

Every situation must be treated in accordance with its own peculiarity.

Where the interest of the citizens are concerned and needs to be protected, definitely, a responsible government has to come in and probably be a player or regulator.

Government can establish refinery by owning majority shares and allowing members of the public to have shares too.

But to leave everything entirely in the hands of private investors in a volatile economy like ours, will amount to leaving Nigerians to the whims and caprices of the exploitative private investors.

For now, subsidy is still very desirable in the petroleum sector because Nigerians should be made to enjoy what nature has deposited in our environment, and should not be made to look like a curse.

The much touted Dangote refinery may not necessarily fulfill the hope of Nigerians in terms of price affordability whenever it eventually comes on stream. This is because the refinery will buy crude oil at the prevailing international price which is dollar denominated.

In some advanced countries, agriculture enjoys huge subsidy from governments.

Therefore, Nigerians deserve to enjoy subsidy on petrol, albeit with transparency.