|
The Agency during the period under review undertook
several activities, which culminated in the full deregulation of the
downstream oil sector on 29th September, 2003.
Since the commencement of the phased deregulation programme of the
downstream sector on 1st January 2002, the economy as a whole has
recorded tremendous changes. These include the availability of petroleum
products; job creation; competition; level playing field and some
infusion of private investment.
The following are some of the specific impact of deregulation on the
economy:
-
Petroleum Products are now available in all the Northern States that
have not had fuel for over a decade at the petrol stations. The three
months of October and December 2003 for instance, was the longest
stretch in the last eighteen months that the nation had virtually
uninterrupted supply of fuel.
-
Deregulation has created an investment window for the active
participation of local entrepreneurs. Oando and Zenon Petroleum
Companies have invested heavily in transport infrastructure in the
downstream sector, by acquiring a fleet of about 200 trucks for fuel
distribution.
(i) Zenon acquired 2 vessels and a Jetty.
(ii) Depot Petroleum Products Marketers Association (DAPPMA) members
have generally improved their tank farms at Ibafon Lagos. Obat Petroleum
Limited has one of the largest and modern storage facilities in the
world today.
-
The Independent Marketers' Company (NIPCO facilities at Apapa have
invested billions of naira to have its storage facilities and a Jetty.
They are set to begin sourcing and distribution of products for their
members.
-
Oando in response to the deregulation of the downstream sector has
opened retail outlets in Ghana and Sierra Leone. They will soon commence
operations in Togo and Ivory Coast.
-
Deregulation has also ushered in a new era of competitive products
Pricing. Apart from the increased number of entrants into the retail
trade, several other businesses have been springing up thereby creating
employment opportunities for the youths.
-
Building of new refineries is receiving attention of private entities
as well as State Governments (Rivers & Ondo) the 18 licenses already
granted some prospective refiners; about 3 are already at advanced stage
of preparations. Also the Federal Government had raised a Presidential
Panel on the Privatisation of the existing refineries. It is expected
that private refineries would be better managed and therefore
satisfy the national requirements better.
-
Industries that have suffered low capacity utilisation and low
productivity are coming alive, as there is enough fuel to power their
engines.
-
Kerosene and diesel, earlier deregulated, are now available at
filling stations at reasonable prices as against the exorbitant rates at
the black markets in the past.
-
These impacts of deregulation enumerated above are by no means
exhaustive but only serve to show what the economy and enterprising
Nigerians can gain.
|
