• Monday, June 24, 2024
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Why Tinubu must be decisive on subsidy, strengthen energy sector –Expert


Dare Osamo, a petroleum downstream sector expert, says incoming President Bola Tinubu must critically look into the issue of petrol subsidy and take a decisive action that will be of benefit to Nigerians across the different strata of society, as well as use the proceeds judiciously.

Osamo, who spoke with journalists in Lagos, on his expectations from the Tinubu’s administration, also believed that the Dangote refinery just commissioned by outgoing President Muhammadu Buhari will create positive impact on Nigerians, just as he described Tinubu as a lucky man.

According to Osamo, the current subsidy payment by the government is only beneficial to a few individuals who are already financially buoyant at the detriment of the nation and are feeding fat on the payment of fuel subsidy by the Federal government.

He, however, advised the new government to embark on massive orientation among her citizens to sensitise them on the benefits of subsidy. He expressed his displeasure at the huge communication gap between the government and the general public over the subsidy issue.

He said Nigerians didn’t need to panic but should be more concerned about the futuristic benefits that could be derived from the policy, such as the construction of roads, schools, hospitals and other basic amenities amongst other. He also urged the new administration to embark on the removal of petroleum subsidy with sincerity of purpose and for the benefit of the populace.

On the new Dangote refinery, Osamo said, from a commercial standpoint, the project will be beneficial to Nigerians, especially through product availability.

“Nigerians consume millions of litres of PMS, AGO, gas fuel and Jet fuel daily, the refinery will make the product available, we all know the impact of a shortage of this product on our economy, how we lose man hours due to shortage, the project will make the product more available locally.

“There will be forex availability for the other sector of the economy. We all know that the importation of products accounts for 70 percent of the forex need of the country, but with this refinery, the FX will be preserved and made available to other productive sectors like agriculture, manufacturing, etc. The FX availability will improve the economy and boost our currency.”

The energy expert also reiterated the impact of the operational cost, he said, “It is going to reduce general operational cost, of individual small scale businesses and large enterprise. If they can get these products at reduced prices, it will impact their operational cost and increase profitability in the long run. He advised government to take security of the assets seriously; he said there must be security for the project, workers and the equipment.

“The government must secure the project against external and internal aggression, the waterways, the land and adjoining facilities must be protected. Expatriates are working there, locals are also working there, and those are some of the ways to support the project.

“Government policies must be right, their policies must not be in direct competition with the project, they must be policy sensitive, all their policies must be in support there must not be any policy summersault, they must be conscious of this investment and make the operating environment friendly,” he added.