Author Topic: OPS Laments Inability To Reform Oil Sector  (Read 120 times)

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OPS Laments Inability To Reform Oil Sector
« on: December 18, 2017, 06:13:46 AM »
The Organised Private Sector (OPS) has decried the inability of the Federal Government to drive reforms in the oil and gas sector in the last 10 years.

It said the failure to reform the sector has removed the shine from Nigeria as a preferred destination for investment in the sector.

It also lamented that the reason for the delay is the failure of successive governments to articulate the appropriate legal framework that will underpin the reform.

Manufacturer?s Association of Nigeria (MAN) Director-General, Segun Ajayi-Kadir, who spoke  on behalf of his colleagues, regretted that at some point, all efforts aimed at achieving  the desired result  have led to  confusion as there were  many versions of the Petroleum Industry Bill (PIB) before the National Assembly, with no one knowing  the  correct version.

He, however, commended the current move of the National Assembly to revisit the bill with a view to accelerating economic development.  He rejected the likely emergence of the Petroleum Regulatory Commission (PRC), which he referred to as humongous commission that will be empowered to regulate the entire petroleum sector.

He said: ?We do not share the views of the National Assembly on the creation of a behemoth regulator for a sector that is not necessarily homogenous in its activities and deliverables. The idea of a single regulator for the whole sector runs contrary to industry standards which by default already provide for an upstream and downstream regulator.?

He said the OPS is against it because the responsibilities expected to be handled by the proposed commission are too wide and cuts-across various value chains in a key sector of the economy.

He said: ?The bureaucratic bottlenecks that will arise would clearly negate the ease of doing business policy  being pursued by the  administration. We believe that an omnibus regulator will further result in cumbersome and constant delays in securing the necessary approvals to conduct business.?

He said the OPS is of the opinion that a single regulator will create  challenges for operators in the petroleum value chain because the structure, operation and nature of the downstream are totally different from that of the upstream sector.

Segun-Kadiri said this is more so when there are different operators in the petroleum sector value chain with multifarious and diverse objectives, ranging from guarding against systemic risk to protecting the individual consumer from fraud.

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OPS Laments Inability To Reform Oil Sector
« on: December 18, 2017, 06:13:46 AM »

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