Tinubu Tells Federal Government to Scrap Subsidy, Deregulate Oil Sector

Tinubu

Managing Director of Oando Plc, Mr. Wale Jubril Tinubu has called on the Federal Government to take strong steps towards deregulating the oil and gas industry, as well as ending the controversial fuel subsidy.

He made this call on Tuesday while speaking at the Oil and Gas Conference and Exhibition in Abuja.

According to reports, the Oando MD lamented over the $5 billion that Nigeria spent on fuel subsidy last year, saying that the sum could have been used to fund other important infrastructure needed by the Nigerian populace.

Tinubu encouraged the stakeholders in the petroleum industry to support oil deregulation for the fostering of national growth.

He stated: “The government has chosen to effectively subsidise the price as a social palliative. Not that I support it, but we spent $5 billion last year on subsidy, which was even more than what we spent on education and housing combined.

“At a population growth rate of three percent, the question is what is the best – to invest in – infrastructure or consumption. There is a big debate that has to be made around this, and as stakeholders, we absolutely need to champion that debate with the Federal Government.

“The politicians want this to continue at all cost, but there is long-term damage we are doing to our country and industry. We need to ensure that this subsidy is altered and the downstream sector needs to be commercialised.

“The refineries need to function and pipelines need to function. There is no logic in is transporting our products by road which is extremely expensive.”

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