Fuel subsidy payments not sustainable, says Ogbechie
The Managing Director, Rainoil Limited, Gabriel Ogbechie has urged the Federal Government to implement the Petroleum Industry Act (PIA) and suspend payments on fuel subsidy for the development of the downstream sector and economy.
According to him, unlocking new opportunities and investment in the downstream sector would not become a reality without the removal of subsidy.
Ogbechie expressed fears about the financial state of the Nigerian economy, considering the huge resources committed to subsidising petroleum products, hence calling on the government to deregulate the downstream sector to curb wastage and loss.
He said Nigeria is due for deregulation while positing that over N3 trillion is currently being spent to subsidise petroleum products in the country which he said has undermined the country’s financial position.
Ogbechie further called for political will to address the current state of subsidy payment in the downstream sector adding that this was what informed the implementation of the Petroleum Industry Act (PIA) to drive
Ogbechie gave the assertion during a press conference to kick-start the firm’s 25 years anniversary in Lagos recently, while hinting that the firm started essentially by just supplying petroleum products to industrial companies.
Reeling out some of the landmarks the firm has achieved in the last 25 years, Ogbechie, noted that the company would continue to adapt in a sustainable way as the energy sector space evolves with future trends.
Speaking further, he asserted that financial discipline informed their decision to grow organically adding that this has helped them to survive the terrain of failed loans and the payment of volatile interest rates on the loans.
Ogbechie maintained that the country cannot continue to spend over N3 trillion on a single product, while other sectors continue to suffer.
Rain Oil Boss stated that it would promptly identify with the value-chain of the downstream oil and gas to organically position on the growth trajectory to evolve and heavily diversify into other sectors.
Ogbechie confirmed that the company made a significant impact in cleaner energy production and resource efficiency in the manufacturing sector while affirming that the company would diversify its interest to adapt to change and innovation in order to deepen investment opportunities in storage, retailing and distribution in the downstream sector.