Maku Defends Oil Deregulation

Minister of Information, Mr. Labaran Maku, on Thursday in Calabar called on all stakeholders in the public information management sector to explain to Nigerians why deregulation of the downstream sector of the petroleum industry was desirable.

Maku made the call at a stakeholders retreat on mobilising support for good governance and effective implementation of government’s development agenda.

The minister who is in Calabar for the 42nd meeting of the National Council on Information, said that government would carry out subsidy redirection instead of subsidy withdrawal.

“I call on all stakeholders in the public information management sector at all levels; federal, states and local governments, to explain to the people why deregulation of the downstream sector is desirable,” he said.

Maku noted that diesel was deregulated some years ago, adding: “when the new deregulation regime begins, the effect will not be subsidy withdrawal, but rather subsidy redirection.”

“Subsidy is not being withdrawn in order to be thrown into the sea. Hundreds of billions of naira are spent annually on the current subsidy regime.

“Everywhere we see the crying needs of education, health, infrastructure, security and so much more. These are the areas to which the subsidy will be redirected.

“Besides, the country must try to take advantage of private investible funds targeted at the downstream sub-sector which investors have always contended is unattractive because of the structures of regulation.”

Maku said deregulating the downstream sector of the petroleum industry would attract investments as was witnessed in other deregulated sectors.

“As managers of information, we cannot fail to notice the quantum of investments and the competitiveness that has taken place in broadcasting since it was freed from the earlier constitutional structures of regulation.”

He said the aviation and telecommunications sectors were thriving since they were deregulated and that government was in support of debates on the proposed deregulation of the downstream sector of the petroleum industry.

Maku also said ongoing debates on the proposed deregulation of the downstream sector of the petroleum industry were healthy because it allowed the ventilation of opinions on a matter that affects all.

“Government, it should be stressed, is about pragmatism and no government deliberately or even inadvertently inflicts hardship on its citizens.

“Therefore, in tandem with Vision 20:2020 and the transformation agenda, government will apply deregulation where it is desirable.”

He stressed that for the policies of government to be effectively communicated to the people; relevant agencies must work in harmony to achieve goals set by government.

Maku called for a better understanding of government policies and said such situation would yield great benefits in the long run.

“We collectively planned this important workshop to ensure that we develop strategies to sell the ideas contained in the Vision 20:2020 programme and the government’s transformation agenda to the people of Nigeria.