Tommy Okon, a prominent figure in Nigeria’s oil and gas sector, shared his concerns about the ongoing subsidy removal and the larger economic issues that accompany it.
According to Arise TV in a recent interview with Okon, he said while the removal of the fuel subsidy itself is not inherently problematic, the broader economic landscape in Nigeria is causing significant challenges for the oil and gas industry.
“Subsidy removal on its own is not the issue,” Okon stated. “It’s the broader economic policies that need to be addressed. The high exchange rate of the naira to the dollar means that everything related to the oil and gas sector is more expensive.”
Okon highlighted that despite the government’s emphasis on the Dangote Refinery as a solution to the country’s oil import dependency, the expected benefits have not materialized. “The Dangote Refinery was supposed to alleviate some of these challenges, but we’re not seeing the impact yet,” he said.
According to Okon, private marketers are yet to gain significant access to refined petroleum products (PMS) from the Dangote facility. Instead, the government appears more focused on reviving the Port Harcourt Refinery, which has faced numerous delays and still hasn’t reached full production capacity despite several promised deadlines.
Okon’s remarks point to the need for a more comprehensive overhaul of Nigeria’s economic policies, particularly in relation to exchange rates and infrastructure development, to address the root causes of rising fuel prices and inefficiencies in the sector.
He added: “Subsidy removal on its own is not the issues; it’s the broader economic policies that need to be addressed. The high exchange rate of the naira to the dollar means that everything related to the oil and gas sector is more expensive. The Dangote Refinery was supposed to alleviate some of these challenge, but we’re not seeing the impact yet. Private marketer need to have access to PMS from Dangote, but the focus seems to be on the port Harcourt refinery, which has not yet started full production despite numerous deadlines.”
SOURCE: News Hub Creator
