Stakeholders Brainstorm on Nigeria’s Downstream Oil Sector, Seek Fair Competition

•Say liberalisation has opened space for private sector participation

Emmanuel Addeh in Abuja

Stakeholders and experts in Nigeria’s oil industry, yesterday discussed Nigeria’s downstream sector, noting that there was the need for stability, especially on the back of the recent deregulation of the sector in line with the Petroleum Industry Act (PIA).

In her opening remarks at a media roundtable on Nigeria’s downstream sector organised by Extractive 360 in Abuja, the Executive Director of the organisation, Juliet Ukanwosu, stressed that the downstream sector remains a vital pillar of Nigeria’s oil and gas industry.

Ukanwosu noted that this is because it directly influences the availability, pricing, and distribution of petroleum products, as well as impacting the daily lives of citizens and the broader economy.

“We have observed, in recent times, the Nigerian petroleum downstream sector is navigating a turbulent phase marked by a combination of opportunities and pressures.

“Since the removal of fuel subsidies, market forces have largely determined pump prices, triggering intense competition — often described as a price war — among operators. This has led to fluctuating product prices, sometimes creating uncertainty for both businesses and consumers.

“In addition, challenges such as high operating costs, irregular foreign exchange rates, import dependency for refined products, and infrastructural bottlenecks have added strain to the sector,” she added.

The executive director pointed out that on the positive side, the liberalisation policy has opened space for more private sector participation, investment in storage and distribution infrastructure, and conversations around refining capacity expansion.

Overall, she stated that the sector was in a state of adjustment, seeking stability and competitiveness amid shifting regulations, volatile market dynamics, and evolving public expectations.

According to her, the session was designed to provide some clarity and new insights which  can be used to enlighten the general public, with experts that will provide context, trends, and current realities.

In her presentation, a legal expert, Olasubomi Chuku, highlighted threats to competitive markets, including monopolies, unstable regulatory environments as well as market ambiguities and poor consumer protection.

Despite the enactment of the PIA, she argued that the market is still fairly closed as the licensing process is not open to interrogation through the Freedom of Information (FOI) Act, plus the issue of rejected or delayed approvals to independent players, while petroleum processing is still largely run by the government.

She underlined the near or emerging monopoly in refinery and weak price competition due to limited participants as well as collusion among dominant market participants for price fixing and hoarding, saying that these remain threats to a competitive market and price competition.

She therefore urged journalists to demand transparency during licensing rounds, monitor and publish prices across petroleum products and states and establish a formal process of interaction with regulators and the legislature to track accountability.

Besides, Chuku urged the media to expose anti-competitive practices and celebrate competitive measures as well as educate the public on the benefits of competition in the oil and gas industry.

In his intervention, an Oil and Gas Governance Consultant, Ademola Adigun, who gave an overview of the industry, highlighted the need to ensure a level playing field in the downstream sector.

Adigun argued that when the sector is driven by fair competition, it makes for a healthy market, and ensuring an investment-friendly  environment.

He said: “The petroleum downstream market should be driven by competition, and the competition must be fair and well regulated by its regulators to provide the benefits to the consumers.”

The post Stakeholders Brainstorm on Nigeria’s Downstream Oil Sector, Seek Fair Competition appeared first on THISDAYLIVE.

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    President Tinubu, Call Your Inspector-General of Police to Order

    President Tinubu, Call Your Inspector-General of Police to Order

    By Mobolaji Sanusi

    President Bola Tinubu, GCFR. Greetings sir.
    Kindly be informed, through this medium, that Nigerians are distraught with your appointed Inspector General of Police. They have no problem with your choice of his person. It is a preference that you’re constitutionally empowered to exercise.

    But in recent times, our people have been compelled by prevailing circumstances to ask questions about whether Kayode Egbetokun, Ph.D., has met their expectations regarding policing responsibilities. Even though most of the challenges being faced by the police as a law enforcement institution of state are not his creation, most Nigerians remain in doubt as to whether Egbetokun has done enough to ameliorate or solve some of these problems.

    This must have informed why, expectedly, an unbridled outrage heralded his insensitively unnecessary tinted vehicle permit policy.

    Mr. President sir, the policy, as newly exhumed and repackaged by the incumbent inspector general of police is thoughtless, insensitive, exploitative, ill-motivated, ill-advised, draconian and more importantly, lacks milk of human kindness with no empirical linkage to the prevailing insecurity in the country that the number one cop seems to have no clue on how to effectively handle.

    The 1999 Constitution (as amended) in section 14(2b) provides that the primary purpose of government is the security and welfare of the people. Clearly, it is undeniable that Egbetokun, with his tinted vehicle permit policy, has not familiarised himself with this important provision on the welfare and wellbeing of the citizenry being the main thrust of government.

    The first issue with his tinted vehicle permit policy is its being ill-conceived and erroneously linked to insecurity while surreptitiously placing high premium on revenue generation by the police he leads.

    Quite unbelievable, Mr. President sir, Egbetokun is exploitatively saying Nigerians should be ready to renew their tinted vehicle permits every year, same with ECMR, that were until now, done once in the lifetime of any vehicle ownership in the country.

    Mr. Egbetokun claimed that the process for obtaining the permit with an official fee of less than N14,200 per year is seamless. This is far from the truth, Mr. President, sir.

    The police POSSAP portal designed for the policy is perpetually busy and the only way to get it done is to pay any identifiable insider an unofficial amount ranging from N45,000.00 to N60,000.00 for proxy access to the portal, and with same proxy method’s generation of personalised code with which an applicant is expected to proceed to Force Headquarters annex, Obalende, for capturing. This cumbersome process is needlessly punitive and extortionate.

    Your sincerely, Mr President sir, believes that Nigerians don’t deserve this unnecessary infliction from the inspector-general. Even if the thoughtless redesign of the policy is so dear to him, why can’t he direct that vehicle owners should obtain the permit when fresh vehicle registration or renewal of expired vehicle license are to be done.

    Egbetokun, above all, callously expects factory or non-factory fitted Nigerian tinted vehicle owners to go through this cumbersome process every year. He also exploitatively expects our people to pay yearly tinted vehicle renewal fees. His main motivation, being revenue and not the policing wellbeing of the people, was well captured by the legal body of lawyers in the country to wit: “The Police may generate at least N3billion within a month from monies that will be collected, thus, turning the Police into a revenue- generating agency of the Federal Government instead of focusing on the more serious issues of crime.”

    Mr. President sir, tinted vehicle permit for factory or self tinted vehicle is nothing new to our people. What is shocking is the shenanigans associated with the permit under the number one cop who has merely monetised, problematised, and distorted its whole essence. This is quite an insensitively disturbing way of projecting Your Excellency’s esteemed government in bad light amongst the hoi poloi tinted vehicle owners and even in the estimation of right thinking elites in this country.

    Mr. Egbetokun has shown no iota of regard for the all important Nigerian Bar Association (NBA) and even the revered judiciary in this country and this is a dangerous development, emanating from the country’s number one cop.

    Mr. President sir, Nigerians were disappointed when they woke up on Friday to the news of Egbetokun-led Police ignoring the pendency of the NBA instituted suit against the force by going ahead to enforce his newly redesigned tinted vehicle permit policy.

    Mr President sir, kindly note that the umbrella body of lawyers in the country, the NBA, has empathetically intervened in the matter. The association has even approached the court to seek judicial solution with Egbetokun’s police looking the other way despite receiving a letter sent to his office reminding him of the pendency of the matter before the Federal High Court, Abuja. The height of police impunity on this issue, despite its pendency in court, is that barely forty-eight hours ago (Thursday), a judge of the National Industrial Court, NIC, in Delta State had his tinted vehicle impounded by the police.

    To mitigate the hardship being faced by the people over this matter, it is imperative to let your esteemed self know that the NBA, through its Chairman on Special Public Interest Litigation Committee, NBA-SPIDEL, Mr Kunle Edun, SAN, has assured the public that the legal body shall “Invoke the powers of the Court to ensure that the Nigeria Police Force does not trample on the rights of Nigerians.”

    The association has also directed its “Human Rights Committees of the 130 branches of the NBA in Nigeria” to offer pro bono services to anyone that is harrassed by the police over this issue. This underscores the seriousness attached to this issue by millions of Nigerians looking up to your esteemed intervention.

    Mr. President sir, the implication of above involvement of NBA is that the recalcitrant posturing of the IGP on this issue may indirectly be galvanizing instruments of blackmail for the opposition against your government. Yours sincerely do not think your esteemed self should allow this to happen. Hence, the necessity of your quick action in this regard.

    It is yours sincerely’s humble view that the Nigeria Police Force under your esteemed presidency, should be directed to forthwith on this matter, show respect for the rule of law, the judiciary, and to eschew anything that could further provoke members of the public on this subject.

    The IGP needs to know the trite law that a party served with an Originating Process and especially a Motion on Notice for Interlocutory Injunction has a duty imposed on him by law to maintain the status quo ante bellum until the case is determined by the court for or against any of the parties involved.

    The need for Egbetokun-led police to keep the state of things the way they were at the time he was served with the motion in order to not foist a situation of helplessness on the court is obligatory, not persuasive.

    As the nation’s number one cop, the expectations of the people on this policy is that he should stop further contempt for judiciary processes. If he’s sure of the constitutionality of his policy on tinted vehicles permit fees policy, he should go ahead and argue his case in a courtroom, not on the several roads across the country where his rampaging men and officers are disturbing peaceful motoring.

    Mr President sir, please, Nigerians need your urgent intervention in calling this man to order. IGP Egbetokun should not be further allowed to dent the constitutional reputation of your government before the judiciary and Nigerians more than his current unyielding posturing is doing.

    May almighty God continue to bless your leadership. Thank you Mr President.

    •Sanusi, former MD/CEO of Lagos State Signage & Advertisement Agency is currently the managing partner of AMS RELIABLE SOLICITORS.

    ​  

    By Mobolaji Sanusi President Bola Tinubu, GCFR. Greetings sir.Kindly be informed, through this medium, that Nigerians are distraught with your appointed Inspector General of Police. They have no problem with

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