Repeal PPPRA, PEF Act To Demonstrate Full Petroluem Industry Deregulation, Group Tells FG

A Consortium of Civil Society Organizations on Wednesday called on the Federal Government to ensure the full deregulation of the downstream petroleum industry by enacting an appropriate legislation or embedding it as part of the Petroleum Industry Bill expected to be submitted to the National Assembly soon.

The consortium which was formed in April 2020 and spearheaded by the Nigeria Natural Resource Charter is comprised of organizations such as Civil Society Legislative Advocacy Centre, BudgIT, Connected Development, Media Initiative for Transparency in Extractive Industries.

Others are OrderPaper Advocacy Initiative, Women in Extractives, Extractive 360, Centre for the Study of the Economies of Africa, Youth Forum on Extractive Industry Transparency Initiativ, Publish What You Pay, Africa Network for Environment and Economic Justice, African Centre for Leadership Strategy and Development, Centre for Development Support Initiatives, Centre for Transparency Advocacy and Koyenum Immalah Foundation .

The Consortium in a statement signed by the programme Coordinator, Nigeria Natural Resource Charter, Tengi George-Ikoli said there was need for the government to commence action to repeal the laws establishing the Petroleum Equalization Fund and the Petroleum Products Pricing and Regulatory Agency to signal its commitment to the full deregulation of the sub-sector.

It said the repeal of the PPPRA and PEF Acts would enable the Federal Government demonstrate to the Nigerian people that the declaration of full deregulation is not merely a statement of intent.

It said, “The President and the Minister of Petroleum Resources should demonstrate honest commitment to the deregulation efforts by expunging the laws that entrench the potential of returning to a subsidy regime and pre-deregulation state.

“The government should repeal the PPPRA Act, the PEF(M)B Act and the Price Control Act specifically, section 6(1) of the Petroleum Act, Schedule 1 of the Price Control Act, all acts that ensure a potential of returning to a price fixing regime and demonstrate to the Nigerian people that the declaration of full deregulation is merely a statement of intent and not yet honored.”

According to the Consortium, there is need for the Ministry of Petroleum Resources to back up its deregulation policy statement by empowering appropriate agencies including the Federal Competition and Consumer Council to take over the consumer protection interests of Nigerians.

This, it stated, would help to ensure effectiveness in the protection of consumer rights under a deregulated downstream sector.

It also stated that relevant agencies, especially the Central Bank of Nigeria should ensure a level-playing field for all importers of Premium Motor Spirit and not place the Nigeria National Petroleum Corporation at an advantage over others.

The statement said, “If the NNPC must remain a player in the market, it must strive to operate under the same conditions and rules as other players in the sector regulated only by the prevailing market forces and competition.

“While we await appropriate legislation, we require the government to clarify the role of the Petroleum Support Fund in the new deregulation regime.

” Clarity is required about how that fund is being managed, whether the over-recovery sums were deposited there and how they are expected to be spent.”

The Group also urged the NNPC to take urgent practical steps to reverse the loss position of the refineries as revealed in its published 2018 Audited Reports of its Subsidiaries.

It stated that the refineries remain cost centers that the Nigerian government cannot afford given the impact of Covid-19 pandemic and other fiscal pressures on its economy.

“The Nigerian government should create an enabling environment for the private sector to contribute to the efficient running of the refineries so that Nigerian can reach its domestic refining goals,” the statement added.

On the issue of ameliorating the immediate effects of the removal of petrol subsidy, the Group urged the government to channel the revenues used for subsidy to improve the lives of its originally intended beneficiaries.

This, according to the statement could be achieved by investing in enablers of economic growth and development such as development of rural roads, education, health services and agriculture.

It also encouraged the government to ramp up its engagements with the public to improve their awareness and understanding of the deregulation process and all it portends for the Nigerian people.