Nigeria aims 90 per cent utilization of nation’s refineries by 2013

Nigeria aims 90 per cent utilization of nation’s refineries by 2013
Anulika Menanya, Lagos

Diezani Madueke, Ngozi Okonjo-Iweala and Lamido Sanusi

The Nigerian government has said that there will be 90 per cent utilization of the nation’s refineries two years from now.

The Minister of Petroleum, Diezani Madueke, stated this at a roundtable debate on the planned removal of petroleum subsidy.

The debate was organized by Newspaper Proprietors Association of Nigeria to determine the implication of the subsidy removal on the economy and on Nigerians.

The meeting drew government officials and stakeholders in the sector to determine the future of fuel subsidy in Nigeria

Arguments

Nigeria’s Finance minister, Ngozi Okonjo Iweala, and Petroleum minister Diezani Madueke are among those that have called for the fuel subsidy removal.

Okonjo-Iweala was of the opinion that the removal will open up the economy.

In her words, “If you look at 2011 for instance, you find that we are spending more and more and higher than we are spending on our capital budget on the subsidy and if we can apply what the Nigerian government would get if we remove the subsidy to our spending, we will be able to reduce borrowing much lower than it would be.”

She maintained that the removal of petroleum subsidy would reduce the cost of running the government and that the funds would be channelled into capital expenditures.

Okonjo Iweala appealed to Nigerians to support fuel subsidy removal and deregulation as it would bring lasting solutions to economic problems in the country.

Those against the removal of subsidy, made up of former labour union leader and Edo State Governor, Adams Oshiomhole, veteran broadcaster, Ben Murray Bruce, among others stressed that there were no measures in place to indicate that the funds would be channelled into infrastructural development.

Mr Bruce advised the government to channel part of the money it will realise if subsidy is removed to the development of the transport sector, to ensure that the cost of transportation is not affected.

Mr Oshiomhole advised the government to consciously choose its policies, by targeting who would benefit and who would pay for it.

He said: “There is no free launch. When a government settles for providing free benefits to certain class it must at the same time target those who will pay for it. If we must subsidize, what should we subsidize? If we must not subsidize, what should we leave to market forces to determine.”

Williams