AS Nigerians groan over the persisting fuel scarcity,
the Managing Director/Chief Executive Officer of
Mobil Oil Nigeria Plc, Mr Tunji Oyebanji, says the
solution was for the Federal Government to
deregulate the downstream petroleum industry.
Oyebanji explained that the ongoing crisis was
being aggravated by panic buying, even as he noted
that tackling and eliminating fuel scarcity means
having constant supply of the product all-year-
round to match consumers’ demand.
“People usually ask me what is the immediate
solution to the fuel scarcity we have in Nigeria and
the only way you can reverse the situation is for you
to be able to put into the market products that are
more than the demand of the consumers,” said
Oyebanji.
The Mobil boss explained that the current crisis has
proved that the Nigerian National Petroleum
Corporation (NNPC) alone cannot meet the
increasing demand for petroleum products in the
country.
“It then becomes imperative to deregulate so that
banks can grant credits to private sector firms to
invest in all facets of the downstream sector,
especially in ownership and management of
refineries as going concern”, he says.
In this interview, Oyebanji also speaks on the
challenges posed to the operators in the
downstream sector by the scarcity of forex.
EXCERPTS:
Scarcity
In recent months, Nigerians have had to battle the
challenges associated with fuel scarcity. And I tell
people that there is only one immediate solution to
the problem, and that is putting more fuel at the
filling stations for them to sell to motorists and
other users. That is the immediate solution. The
problem is basically a supply deficiency and the
only way you solve a supply problem is making the
product available in the market for consumers. And
that appears to be the challenge that we are
currently facing. And you know that whatever comes
into the market is quickly taken up because there is
panic buying. People don’t know when next the fuel
will be available at a filling station that they see
selling fuel. So they quickly have to buy as soon as
they see fuel. Those who would ordinarily buy like
10 or 20 litres and drive off will now want to fill up
their tanks and also fill up the jerry cans in their
houses.
So maybe a filling station that was selling 20,000
litres a day is now selling 30,000 litres a day
because of this type of panic buying. And the only
way you can reverse the situation is for you to be
able to put products that are more than the demand
into the market. Supply must surpass demand for a
period if normalcy is to be achieved in the system.
And when people begin to get the confidence that
there is product in the system, then they will no
longer have to want to fill up their tanks and all the
storage items or drums in their homes. That is the
only solution. Pour more products into the system
and boost the confidence of the people and the
whole queues will disappear. But honestly, that will
take a bit of time.
There are lots of challenges in the system, from
importation to discharging at the depots. You have
logistics problems because it can take up to four
days moving products from say Lagos to Abuja.
And further north, it can even take longer days than
that. As a country, the best thing we can always do
is to ensure that the situation where supply is not
matching demand is not created at all. Because
once you create that situation, it is usually a bit
challenging for the situation to be eliminated
completely. But I am hopeful that with the plans
that have been put on ground where marketers are
working with the NNPC and the petroleum ministry,
this will be realized and the occurrences of it will
reduce in the future if not completely eliminated.
Forex
I am afraid that getting over the challenges of forex
by business owners, including oil marketers and
importers of fuel, will almost be impossible for now
because the major source of foreign exchange is
the sale of crude oil and that is channeled through
the CBN. So there is limited area for maneuver.
There are few institutions that, may be through their
affiliate companies abroad, that are able to get
some support in terms of forex, but that is not the
case for all the players in the industry. So people
who do not have that ability, it is really going to be
tough for them because we all have to depend on
what the government or CBN considers as priorities.
And priorities will continue to be given to fuel im­
ports because if you don’t do that, then there will
be queues at filling stations. But hopefully with
time, the queues will begin to ease up. But to a
large extent, we have to continue to depend on
forex based on what we can get from the CBN.
Deregulation
Look at all other industries that have been
deregulated and see how they are being managed.
Deregulation allows you to plan and also to stay
competitive. Look at the aviation industry. You can
even look at your own newspaper industry. It is a
simple thing. In other industries, someone is
responsible for the imports of their raw materials
and he plans ahead on what is the requirement of
the market and how he can achieve his profit. It is
the same thing in our industry. We also know what
is required to make the downstream industry more
efficient. But we are in a situation today where we
cannot do that because it is the government that is
in charge of everything. It is the government that
regulates. It is the government that has the power
to say, look Mr. A, you have 100 litres and may be
what I actually need is 50 litres, and the
government tells another person you have 200litres,
and may be what that person needs is 250 litres.
The problem is that everyone is nervous because of
what happened in 2011 with the subsidy scheme.
The government too is nervous because they don’t
want people to come and claim subsidies for what
they didn’t do. And for me, the only way is to put
up a structure that eliminates all this state of
nervousness. And that can only be achieved in a
system that frees up the market and that allows the
private sector just as it does in all other industries
to compete. Whenever I say this, people will tell
me petrol is different. For me, it is not. Petrol
remains a product. It is manufactured like many
other things we import and sell. I feel that if the
private sector is given the freedom, and I am not
talking about the freedom to do what they like, but
the freedom to take the business decisions that
allows them to compete under a deregulated
environment, then things will change automatically
for the better. Deregulation will allow marketers to
import and sell wherever they want. If , for instance,
I want to import for the next quarter of the year, I
can go ahead to take the business decision to do it.
And if I want to move my products from one place
to another place, I can also do that as a business
decision. But today you find a situation where a
marketer can decide to send 20 trucks to Abuja and
if he wants to take another truck to his station in
Kano, someone will not allow him to do so because
of some other interests like even the need to clear
queues in a particular area. For me, I am looking at
my own micro level. So when you free up the
market people can take better business decisions,
those who want to import will do so, and those who
even want to build private refineries will be able to
do so as well.
Refineries
It will be very difficult under the present regulated
environment for private firms to invest in refineries
in Nigeria. People invest to make money. Let’s use
the example of those who invested in tank farms.
Assuming that that was the refineries, a lot of
people would have lost money. Today, the template
has been changed and what people use to make on
tank farms has been slashed. There is government
summersault on policies in the industry. And this
creates uncertainty, which is not good for investors.
Assuming I had gone to the bank to borrow a loan
to build a tank farm and they came up and cut
down the profit margins, tell me how will I pay
back the loan. Who will help me out? These things
are economic things and not emotional. If we don’t
face it, we will keep postponing it, and the
problems will continue. And because we are not
able to adjust, we cannot invest. People have often
cited the case of Alhaji Dangote who is building a
refinery in Nigeria. I stand to be corrected; Dangote
may have put some of his money into that invest­
ment. It may not all be about the money gotten as
loans from banks. I stand to be corrected on this.
Because I said earlier, banks will not give you
money if they are not sure of how they will get their
money back. Bank money is shareholders’ money.
But unlike Mobil Oil, which is owned by
shareholders, Dangote is a Nigerian businessman.
And he has been here in Nigeria for a long time and
may be more bullish and may also be more
aggressive. And everyone has a chance of making a
decision about what he wants to do when he owns
a private company.
Sometimes, such person may be more risk averse.
But for me as the managing director of Mobil Oil, it
is about the shareholders’ money. If, therefore, I am
going to invest in a private refinery, it is not about
my money, but, like I said, it will be the
shareholders’ money. And I must be sure of
adequate returns on any investment I make with
such money. And, therefore, the risk that I take with
my own money will certainly not be the same with
what I will want to take with shareholders’ money.
So that is just the difference. So when people say
or ask why the oil companies that have been in
existence in Nigeria for many years, and yet have
not invested in a refinery, it is because there is
need to be very conservative as it would not make
business sense to do so under a regulated regime.
It is like being asked to manage a pension fund,
you cannot use it to speculate and invest in
businesses that you are not very sure of, but you
can put it in fixed deposits or treasury bills. So you
are less aggressive and more conservative in your
investment of such funds. It is not an emotional de­
cision but a purely business decision.
PIB
I think it is important also to get the Petroleum
Industry Bill (PIB) out and it will help because it will
clarify the plans for the future in the industry.
People will be able to make investment decisions.
If you want to stop flaring gas, for instance, you
know you will need to process it and you will also
need to build big gas gathering plants. And it takes
a lot of money to build this. And it is a business
decision that is better taken given the laws in the
country or the enabling environment. We need to
know the laws that back up some investments and
the penalties as well. And only the PIB will do that.
If the industry is deregulated and there are laws
backing it up, you will begin to see companies
setting up refineries. Even now, we will argue that
there is a wider acceptance of the concept of
deregulation in Nigeria.
The Nigerian businessman has demonstrated the
capacity to invest in any business as long as he is
able to get adequate returns. Capital usually goes to
where there is an assurance of good returns. But
the banks wont give you credit where there is no
returns.And that is why some companies are not
investing in refineries under a regulated
environment. The margins that marketers have to
sell fuel and make profit is so low at present and
thus making it hard for investments. Already, there
is a lot of competition in the industry and under
deregulation, there will be increased competition
and what will happen is that it is only those who are
able to stay on the top that will survive. Those who
are able to be efficient and to run their business
well will be able to survive the competition.
Therefore the bigger your refinery is under a
deregulated industry, the more efficient you will be
profitable. So for those who want to build these
small refineries, it is not a bad idea. But by the
time the big tigers come on stream, there is a
tendency that you will have to pack up and go.


www.sunnewsonline.com/full-deregulation-of-petroleum-downstreamll-end-fuel-scarcity-oyebanji-mobil-ceo/

OK, that sounds cool.

I want to open a thread and saw this heading.
Thank you Mr. CEO of Mobil for lending your voice, we are seriously suffering under this President and Minister of Petroleum. Who can call him to order please? He seems to be above everybody, his party cannot talk to him, everyone is scared of this man and he doesn't know what to do.
Please don't tell me, that I and the people of this country will continue to suffer like this for the remaining three years of this administration. I joined queue in Kaduna yesterday by 5:35 am, only to get fuel by 8:00pm. If you know Kaduna very well, I queued from GTB Murtala Square and the destination was Mobil durbar, we drove through Murtala Square, Independence Way, Lafia Rd.,through the road of Crocodile Hotel and Muhammdu Buhari Way (Wharf Road). The journey was long, the sun was hot and the hunger was real. We ate together as brothers that ordinary Nigerians are, Christians, Muslims, maybe Atheist, Idol worshippers, APC, PDP etc. I bought Bananas, Abdulkarim bought Oranges, it was a little fun though.
Somebody should help us talk to Buhari, I'm not saying he should stop fighting corruption. He should help us to give us what belong to us, for not voting him as President all this while, we are sorry. He should forgive us, to err is human, to forgive is divine quoting from Nollywood.

Lordwize:
I want to open a thread and saw this heading.
Thank you Mr. CEO of Mobil for lending your voice, we are seriously suffering under this President and Minister of Petroleum. Who can call him to order please? He seems to be above everybody, his party cannot talk to him, everyone is scared of this man and he doesn't know what to do.
Please don't tell me, that I and the people of this country will continue to suffer like this for the remaining three years of this administration. I joined queue in Kaduna yesterday by 5:35 am, only to get fuel by 8:00pm. If you know Kaduna very well, I queued from GTB Murtala Square and the destination was Mobil durbar, we drove through Murtala Square, Independence Way, Lafia Rd.,through the road of Crocodile Hotel and Muhammdu Buhari Way (Wharf Road). The journey was long, the sun was hot and the hunger was real. We ate together as brothers that ordinary Nigerians are, Christians, Muslims, maybe Atheist, Idol worshippers, APC, PDP etc. I bought Bananas, Abdulkarim bought Oranges, it was a little fun though.
Somebody should help us talk to Buhari, I'm not saying he should stop fighting corruption. He should help us to give us what belong to us, for not voting him as President all this while, we are sorry. He should forgive us, to err is human, to forgive is divine quoted from Nollywood.

Deregularize petrol, and we will have no control over export at federal level. So PDP can now legally buy oil wells. Nigerians are looking for short term solutions. Not Happening. Sit Tight

simtosul:

AS Nigerians groan over the persisting fuel scarcity,
the Managing Director/Chief Executive Officer of
Mobil Oil Nigeria Plc, Mr Tunji Oyebanji, says the
solution was for the Federal Government to
deregulate the downstream petroleum industry.
Oyebanji explained that the ongoing crisis was
being aggravated by panic buying, even as he noted
that tackling and eliminating fuel scarcity means
having constant supply of the product all-year-
round to match consumers’ demand.
“People usually ask me what is the immediate
solution to the fuel scarcity we have in Nigeria and
the only way you can reverse the situation is for you
to be able to put into the market products that are
more than the demand of the consumers,” said
Oyebanji.
The Mobil boss explained that the current crisis has
proved that the Nigerian National Petroleum
Corporation (NNPC) alone cannot meet the
increasing demand for petroleum products in the
country.
“It then becomes imperative to deregulate so that
banks can grant credits to private sector firms to
invest in all facets of the downstream sector,
especially in ownership and management of
refineries as going concern”, he says.
In this interview, Oyebanji also speaks on the
challenges posed to the operators in the
downstream sector by the scarcity of forex.
EXCERPTS:
Scarcity
In recent months, Nigerians have had to battle the
challenges associated with fuel scarcity. And I tell
people that there is only one immediate solution to
the problem, and that is putting more fuel at the
filling stations for them to sell to motorists and
other users. That is the immediate solution. The
problem is basically a supply deficiency and the
only way you solve a supply problem is making the
product available in the market for consumers. And
that appears to be the challenge that we are
currently facing. And you know that whatever comes
into the market is quickly taken up because there is
panic buying. People don’t know when next the fuel
will be available at a filling station that they see
selling fuel. So they quickly have to buy as soon as
they see fuel. Those who would ordinarily buy like
10 or 20 litres and drive off will now want to fill up
their tanks and also fill up the jerry cans in their
houses.
So maybe a filling station that was selling 20,000
litres a day is now selling 30,000 litres a day
because of this type of panic buying. And the only
way you can reverse the situation is for you to be
able to put products that are more than the demand
into the market. Supply must surpass demand for a
period if normalcy is to be achieved in the system.
And when people begin to get the confidence that
there is product in the system, then they will no
longer have to want to fill up their tanks and all the
storage items or drums in their homes. That is the
only solution. Pour more products into the system
and boost the confidence of the people and the
whole queues will disappear. But honestly, that will
take a bit of time.
There are lots of challenges in the system, from
importation to discharging at the depots. You have
logistics problems because it can take up to four
days moving products from say Lagos to Abuja.
And further north, it can even take longer days than
that. As a country, the best thing we can always do
is to ensure that the situation where supply is not
matching demand is not created at all. Because
once you create that situation, it is usually a bit
challenging for the situation to be eliminated
completely. But I am hopeful that with the plans
that have been put on ground where marketers are
working with the NNPC and the petroleum ministry,
this will be realized and the occurrences of it will
reduce in the future if not completely eliminated.
Forex
I am afraid that getting over the challenges of forex
by business owners, including oil marketers and
importers of fuel, will almost be impossible for now
because the major source of foreign exchange is
the sale of crude oil and that is channeled through
the CBN. So there is limited area for maneuver.
There are few institutions that, may be through their
affiliate companies abroad, that are able to get
some support in terms of forex, but that is not the
case for all the players in the industry. So people
who do not have that ability, it is really going to be
tough for them because we all have to depend on
what the government or CBN considers as priorities.
And priorities will continue to be given to fuel im­
ports because if you don’t do that, then there will
be queues at filling stations. But hopefully with
time, the queues will begin to ease up. But to a
large extent, we have to continue to depend on
forex based on what we can get from the CBN.
Deregulation
Look at all other industries that have been
deregulated and see how they are being managed.
Deregulation allows you to plan and also to stay
competitive. Look at the aviation industry. You can
even look at your own newspaper industry. It is a
simple thing. In other industries, someone is
responsible for the imports of their raw materials
and he plans ahead on what is the requirement of
the market and how he can achieve his profit. It is
the same thing in our industry. We also know what
is required to make the downstream industry more
efficient. But we are in a situation today where we
cannot do that because it is the government that is
in charge of everything. It is the government that
regulates. It is the government that has the power
to say, look Mr. A, you have 100 litres and may be
what I actually need is 50 litres, and the
government tells another person you have 200litres,
and may be what that person needs is 250 litres.
The problem is that everyone is nervous because of
what happened in 2011 with the subsidy scheme.
The government too is nervous because they don’t
want people to come and claim subsidies for what
they didn’t do. And for me, the only way is to put
up a structure that eliminates all this state of
nervousness. And that can only be achieved in a
system that frees up the market and that allows the
private sector just as it does in all other industries
to compete. Whenever I say this, people will tell
me petrol is different. For me, it is not. Petrol
remains a product. It is manufactured like many
other things we import and sell. I feel that if the
private sector is given the freedom, and I am not
talking about the freedom to do what they like, but
the freedom to take the business decisions that
allows them to compete under a deregulated
environment, then things will change automatically
for the better. Deregulation will allow marketers to
import and sell wherever they want. If , for instance,
I want to import for the next quarter of the year, I
can go ahead to take the business decision to do it.
And if I want to move my products from one place
to another place, I can also do that as a business
decision. But today you find a situation where a
marketer can decide to send 20 trucks to Abuja and
if he wants to take another truck to his station in
Kano, someone will not allow him to do so because
of some other interests like even the need to clear
queues in a particular area. For me, I am looking at
my own micro level. So when you free up the
market people can take better business decisions,
those who want to import will do so, and those who
even want to build private refineries will be able to
do so as well.
Refineries
It will be very difficult under the present regulated
environment for private firms to invest in refineries
in Nigeria. People invest to make money. Let’s use
the example of those who invested in tank farms.
Assuming that that was the refineries, a lot of
people would have lost money. Today, the template
has been changed and what people use to make on
tank farms has been slashed. There is government
summersault on policies in the industry. And this
creates uncertainty, which is not good for investors.
Assuming I had gone to the bank to borrow a loan
to build a tank farm and they came up and cut
down the profit margins, tell me how will I pay
back the loan. Who will help me out? These things
are economic things and not emotional. If we don’t
face it, we will keep postponing it, and the
problems will continue. And because we are not
able to adjust, we cannot invest. People have often
cited the case of Alhaji Dangote who is building a
refinery in Nigeria. I stand to be corrected; Dangote
may have put some of his money into that invest­
ment. It may not all be about the money gotten as
loans from banks. I stand to be corrected on this.
Because I said earlier, banks will not give you
money if they are not sure of how they will get their
money back. Bank money is shareholders’ money.
But unlike Mobil Oil, which is owned by
shareholders, Dangote is a Nigerian businessman.
And he has been here in Nigeria for a long time and
may be more bullish and may also be more
aggressive. And everyone has a chance of making a
decision about what he wants to do when he owns
a private company.
Sometimes, such person may be more risk averse.
But for me as the managing director of Mobil Oil, it
is about the shareholders’ money. If, therefore, I am
going to invest in a private refinery, it is not about
my money, but, like I said, it will be the
shareholders’ money. And I must be sure of
adequate returns on any investment I make with
such money. And, therefore, the risk that I take with
my own money will certainly not be the same with
what I will want to take with shareholders’ money.
So that is just the difference. So when people say
or ask why the oil companies that have been in
existence in Nigeria for many years, and yet have
not invested in a refinery, it is because there is
need to be very conservative as it would not make
business sense to do so under a regulated regime.
It is like being asked to manage a pension fund,
you cannot use it to speculate and invest in
businesses that you are not very sure of, but you
can put it in fixed deposits or treasury bills. So you
are less aggressive and more conservative in your
investment of such funds. It is not an emotional de­
cision but a purely business decision.
PIB
I think it is important also to get the Petroleum
Industry Bill (PIB) out and it will help because it will
clarify the plans for the future in the industry.
People will be able to make investment decisions.
If you want to stop flaring gas, for instance, you
know you will need to process it and you will also
need to build big gas gathering plants. And it takes
a lot of money to build this. And it is a business
decision that is better taken given the laws in the
country or the enabling environment. We need to
know the laws that back up some investments and
the penalties as well. And only the PIB will do that.
If the industry is deregulated and there are laws
backing it up, you will begin to see companies
setting up refineries. Even now, we will argue that
there is a wider acceptance of the concept of
deregulation in Nigeria.
The Nigerian businessman has demonstrated the
capacity to invest in any business as long as he is
able to get adequate returns. Capital usually goes to
where there is an assurance of good returns. But
the banks wont give you credit where there is no
returns.And that is why some companies are not
investing in refineries under a regulated
environment. The margins that marketers have to
sell fuel and make profit is so low at present and
thus making it hard for investments. Already, there
is a lot of competition in the industry and under
deregulation, there will be increased competition
and what will happen is that it is only those who are
able to stay on the top that will survive. Those who
are able to be efficient and to run their business
well will be able to survive the competition.
Therefore the bigger your refinery is under a
deregulated industry, the more efficient you will be
profitable. So for those who want to build these
small refineries, it is not a bad idea. But by the
time the big tigers come on stream, there is a
tendency that you will have to pack up and go.


www.sunnewsonline.com/full-deregulation-of-petroleum-downstreamll-end-fuel-scarcity-oyebanji-mobil-ceo/

MOBIL IS AN AMERICAN/EUROPEAN INSTITUTION. THESE COMPANIES IMF, MOBIL, EXON WORK IN THE INTEREST OF AMERICA/EUROPE. THEY SUGGEST LAWS THAT SPECIFICALLY MAINTAINS POVERTY IN ANY ECONOMY SO THEY CAN KEEP THEIR LEASH OVER THEIR SLAVES. ANYTHING CEO MOBIL IS SUGGESTING IS IN THE INTEREST OF AMERICA. NOT NIGERIA. WE ACTUALLY SHOULD BE WORKING TO KICK MOBIL OUT OF NIGERIA.

enlightenedmind:


Deregularize petrol, and we will have no control over export at federal level. So PDP can now legally buy oil wells. Nigerians are looking for short term solutions. Not Happening. Sit Tight

What should be the solution my brother? This wahala don dey pass, don be silly o.

enlightenedmind:


Deregularize petrol, and we will have no control over export at federal level. So PDP can now legally buy oil wells. Nigerians are looking for short term solutions. Not Happening. Sit Tight

Do you even understand what they are talking about?

Lordwize:
What should be the solution my brother? This wahala font dey pass, don be silly o.

Solution will not happen over night. My dear the problem is America has ban imports from all slave nations. And please i beg you just listen to me, APC or PDP, MOBIL is an American institution and is working in America's interest. America creates institutions of poverty and destitution so nations would need them and they come to the rescue and then we owe hugely. We eventually have to devalue currency to pay back increasing poverty rates.
America provided weapons for the first and second world wars and all nations, on both sides were owing them after the war. Everyone lived in destitute for years to pay america back. Every nation is trying to free themselves.
Op please i beg you, you can be PDP or APC but please one thing Buhari is doing by these bans, is removing the shackles. We are fighting for our economic freedoms.
The british people specifically wrote in the constitution that the north should not be educated. But they 'highly recommended' decades later (when my poor village ancestors must have forgotten) that power be given to the north.
We need to begin to destroy those systems of hidden chains and claws in our systems. They are just clawing away. Angola, Zimbabwe has done this.
Please western powers will never allow nigeria to be developed if we do not stick this out. I know it is hard but dont worry. Send me ur email we will chat and forget our sorrows.

Validated:

Do you even understand what they are talking about?

yes i do. remove restrictions on petrol and state/lga level will be responsible for production i the end.

Enlightenedmind, the Marxist and believer in conspiracy theory. They should think out solutions, time is running out. This administration was running their mouths under Goodluck, how fuel should be cheaper. Under them, the product is nonexistent.

I tink d president shld sit down with different economist in d country to find a solution to our problems cos dis matter don dey pass "don't be silly ooo

Am yet to see seriousness in federal government of Nigeria on tackling the fuel scarcity situation. How long more should we wait?!

check my signature for a natural and healthy way to loose excess fat and weight

Mr Tunji Oyebanji has explained beautifully what the real problems with Nigeria's petroleum sector are, and he's also given clear, well-explained answers about the solutions. The pity is that most Nigerians lack the patience to read, let alone the insight to understand, what Oyebanji is saying - and that lack of patience and understanding extends right up to the President.

When Kachikwu suggested last year that the entire sector be deregulated, Buhari wasted no time shooting the suggestion down. All of us who have some grasp of economics were predicting then exactly what came about: continued shortages, continued smuggling, continued failure all around. Buhari may be an honest man, but he is utterly incapable of learning from his mistakes, and utterly unwilling to listen to people who have expertise he lacks.

enlightenedmind:
Solution will not happen over night. My dear the problem is America has ban imports from all slave nations. And please i beg you just listen to me, APC or PDP, [b]MOBIL is an American institution and is working in America's interest. [/b]America creates institutions of poverty and destitution so nations would need them and they come to the rescue and then we owe hugely. We eventually have to devalue currency to pay back increasing poverty rates.
America provided weapons for the first and second world wars and all nations, on both sides were owing them after the war. Everyone lived in destitute for years to pay america back. Every nation is trying to free themselves.
Op please i beg you, you can be PDP or APC but please one thing Buhari is doing by these bans, is removing the shackles. We are fighting for our economic freedoms.
The british people specifically wrote in the constitution that the north should not be educated. But they 'highly recommended' decades later (when my poor village ancestors must have forgotten) that power be given to the north.
We need to begin to destroy those systems of hidden chains and claws in our systems. They are just clawing away. Angola, Zimbabwe has done this.
Please western powers will never allow nigeria to be developed if we do not stick this out. I know it is hard but dont worry. Send me ur email we will chat and forget our sorrows.

The company in question is Mobil Oil which is different from Mobil Producing (ExxonMobil). Mobil Oil is a wholly owned Nigerian company quoted on the Nigerian Stock Exchange. They operate within the downstream and midstream sectors of the Nigerian Oil & Gas industry. On the other hand, Mobil Producing Nigeria is a subsidiary of ExxonMobil which is an American company quoted on the New York Stock Exchange. They operate in the Upstream sector of the industry.

Just wanted to provide some perspective to guide your discussions. I also think it will be more engaging for you to discuss the merits/demerits of what was said rather than the usual 'colonial/conspiracy' banter.

How many Nigerian or well bred unselfishness African economists agree with you?

When Mobil and other companies were exporting finished petroleum products out to neighboring countries, how much foreign income did they declare in Nigeria?

At the same time using our foreign reserves to import oil. Should a company like Mobil even be given foreign deserve allocation after all these years?

The figure head of Mobil controlled by America is justifying why Mobil cannot build refineries but Dagote can because he is ready to risk his money. What a shame, coming from another Nigerian admitting that he is a stooge.

Any reasonable African can see through him.

I am Yoruba, leave Kachiku alone. The rut created by exploiters like Mobil and other oil companies that continue to waste gas flaring and pollute our environment wickedly despite many postponed deadlines and laws just to bring the country down like all African countries.

You all want Kachikwu to use his magic wand to correct it in a year.

Yeah right. It's our money, we can spend or loot it anyway we want, Delta remained environmental disaster under your son for good 6 to 8 years!

Lordwize:
Enlightenedmind, the Marxist and believer in conspiracy theory. They should think out solutions, time is running out. This administration was running their mouths under Goodluck, how fuel should be cheaper. Under them, the product is nonexistent.

How is it a conspiracy theory. Are you so dumb that you do not know that the US charges a 51% interest rates on any money body form IMF.
If you borrow from IMF, you must pay back in Dollars.
Dollars is the USA currency and these IMF loans are long term loans.
So by the time you are paying back ur currency must have been devalued as compared to Dollars.
You do not pay back at the original dollar rate the money was borrowed.
And you also pay interest rates at the current dollar exchange rate.
So in the end, you end up owing more than you borrowed with about 100% profits for the US.

We depend on the sale of oil in nIgeria for income while some other countries depend on the sale of Gold. The USA drove down oil prices by strictly partnering with UAE. And cutting everybody else off.
It drove down the prices of gold simple by increasing the cost storing gold.
In 2008, the whole world had to go into financial recession because a few US/UK banks and Wall street decided to play hanky panky with people's money.
China, Brazil, Russia is trying to break this dominace. One single currency should not control the entire world's purchasing power. If US/UK decide to defraud people then children in China, Angola, Madagscar will stave to death.

Bevista:
The company in question is Mobil Oil which is different from Mobil Producing (ExxonMobil). Mobil Oil is a wholly owned Nigerian company quoted on the Nigerian Stock Exchange. They operate within the downstream and midstream sectors of the Nigerian Oil & Gas industry. On the other hand, Mobil Producing Nigeria is a subsidiary of ExxonMobil which is an American company quoted on the New York Stock Exchange. They operate in the Upstream sector of the industry.

Just wanted to provide some perspective to guide your discussions. I also think it will be more engaging for you to discuss the merits/demerits of what was said rather than the usual 'colonial/conspiracy' banter.

I cannot believe this.ExxonMobil has 3 affiliates operating in Nigeria. Mobil Producing Nigeria Unlimited (MPN) – Upstream
Esso Exploration and Production Nigeria Ltd. (EEPNL) – Upstream
and Mobil Oil Nigeria (MON) – Downstream

MOBIL OIL IS AN AFFILIATE OF EXXONMOBIL

It is like there is no one with a brain again in NIgeria

banku:
How many Nigerian or well bred unselfishness African economists agree with you?

When Mobil and other companies were exporting finished petroleum products out to neighboring countries, how much foreign income did they declare in Nigeria?

At the same time using our foreign reserves to import oil. Should a company like Mobil even be given foreign deserve allocation after all these years?

The figure head of Mobil controlled by America is justifying why Mobil cannot build refineries but Dagote can because he is ready to risk his money. What a shame, coming from another Nigerian admitting that he is a stooge.

Any reasonable African can see through him.

I am Yoruba, leave Kachiku alone. The rut created by exploiters like Mobil and other oil companies that continue to waste gas flaring and pollute our environment wickedly despite many postponed deadlines and laws just to bring the country down like all African countries.

You all want Kachikwu to use his magic wand to correct it in a year.

Yeah right. It's our money, we can spend or loot it anyway we want, Delta remained environmental disaster under your son for good 6 to 8 years!

I agree with you. But disagree on the 'it is our money part, we can loot away'. It is not yours, it is for every Nigerian Buhari to the woman selling fish in market. That means we must ensure that everyone has access to these resources and benefits from it equally. Not just a few people.

omohayek:
Mr Tunji Oyebanji has explained beautifully what the real problems with Nigeria's petroleum sector are, and he's also given clear, well-explained answers about the solutions. The pity is that most Nigerians lack the patience to read, let alone the insight to understand, what Oyebanji is saying - and that lack of patience and understanding extends right up to the President.

When Kachikwu suggested last year that the entire sector be deregulated, Buhari wasted no time shooting the suggestion down. All of us who have some grasp of economics were predicting then exactly what came about: continued shortages, continued smuggling, continued failure all around. Buhari may be an honest man, but he is utterly incapable of learning from his mistakes, and utterly unwilling to listen to people who have expertise he lacks.

It cannot be deregulated until there are measures to control import and export of oil. When he deregulates now, everyone will come and explore and pollute the land and no one will take responsibility. You pple will say it is the Govt.
The pollution in oil states now, why are you pple blaming federal govt? It was you corrupt PDP leaders who gave access to people to illegally purchase oil wells and explore.
They take the oil, but do not care about the environment.

enlightenedmind:


It cannot be deregulated until there are measures to control import and export of oil. When he deregulates now, everyone will come and explore and pollute the land and no one will take responsibility. You pple will say it is the Govt.
The pollution in oil states now, why are you pple blaming federal govt? It was you corrupt PDP leaders who gave access to people to illegally purchase oil wells and explore.
They take the oil, but do not care about the environment.

Who are these "you pple" you keep referring to? Because it surely isn't me. And who told you I am a PDP supporter? Are you really stupid enough to believe that one has to support the PDP to understand why deregulation is necessary?

Please stop putting words in my mouth, and stick to addressing things I've actually said. If you don't understand the economic reasoning behind my position, at least refrain from attempting to hijack it to indulge in the usual mindless "PDP vs. APC" bickering beloved by Nairalanders.

omohayek:


Who are these "you pple" you keep referring to? Because it surely isn't me. And who told you I am a PDP supporter? Are you really stupid enough to believe that one has to support the PDP to understand why deregulation is necessary?

Please stop putting words in my mouth, and stick to addressing things I've actually said. If you don't understand the economic reasoning behind my position, at least refrain from attempting to hijack it to indulge in the usual mindless "PDP vs. APC" bickering beloved by Nairalanders.

ok. kpele. But the deregulation of oil will only serve short-term want. Long term benefits however is a non-existent. To deregulate oil we must decentralize the political system so each state is responsible for the policies around oil exploration in that state. If you deregulate any sector in a centralized system, then you are eliminating accountability. Because state and individuals can claim profits but do not take responsibility for maintenance and policies.

enlightenedmind:
I cannot believe this.ExxonMobil has 3 affiliates operating in Nigeria. Mobil Producing Nigeria Unlimited (MPN) – Upstream
Esso Exploration and Production Nigeria Ltd. (EEPNL) – Upstream
and Mobil Oil Nigeria (MON) – Downstream

MOBIL OIL IS AN AFFILIATE OF EXXONMOBIL

It is like there is no one with a brain again in NIgeria

Point noted. Thanks for the compliments, by the way.

enlightenedmind:


ok. kpele. But the deregulation of oil will only serve short-term want. Long term benefits however is a non-existent. To deregulate oil we must decentralize the political system so each state is responsible for the policies around oil exploration in that state. If you deregulate any sector in a centralized system, then you are eliminating accountability. Because state and individuals can claim profits but do not take responsibility for maintenance and policies.

"Deregulation" in the context of the oil industry does not mean abandonment of all government regulation on the environment and so forth. That's not the sense in which I mean it, and I don't think that's what the author of the article has in mind either. What we're talking about here is allowing private companies to buy and sell at prices they freely choose, and allowing them to invest in any sector, instead of monopolizing a few for government-run parastatals. There's no reason why this would imply an "anything goes" policy in terms of environmental regulations.

Speaking of said regulations, it's worth mentioning that the current setup hasn't exactly been good for the people of the Niger Delta. Here is what Peter Cunliffe-Jones has to say in his book "My Nigeria: 5 decades of independence".

In 2008, a Nigerian environmental agency reported 1,150 major oil-spill sites across the delta abandoned by oil companies, all leaking into the water people drink and the land they live off. Tests last decade found hydrocarbons in drinking water at levels more than 360 times what is permitted in Europe.

So I don't see how you can support leaving the petroleum sector in its current state if you care about the environment.

enlightenedmind:
Deregularize petrol, and we will have no control over export at federal level. So PDP can now legally buy oil wells. Nigerians are looking for short term solutions. Not Happening. Sit Tight

Diesel was de-regulated years ago, and what was the end result? Have they flooded the market with diesel in the past few months?

The problem of fuel scarcity is a systemic problem. No matter what the government does, it won't disappear overnite but will remain with us until the government totally deregulates the oil sector and not the partial deregulation currently going on.

This is a few of the problems why we will continue to have fuel scarcity.

-- Govt has pegged the price of fuel at 86.50 despite saying that they have deregulated the sector. This action is a reason we will never have private investors come in because how can government say they are deregulating and still go ahead to fix prices forgeting that the cost of doing business for every player in the industry cannot be the same thing?

This action of the government is a political one because the moment government totally hands this sector, the price of petrol will shoot up. What this means is that, if the cost of petrol is 120 in Lagos, it may be 180 in Adamawa, 110 in Rivers, 190 in katsina, 130 in Ebonyi etc.

Any increase in the cost of petrol (will also cause an increase in almost all goods and services in the country) this automatically pits the citizens against the government in power therefore all our governments have been careful not to incur the full wrath of the people especially this present government since they are claiming change.

Therefore with this current policy, no investor will invest in our refineries. That means that we still not be able to meet our petrol demand internally.

-- Since the Govt has stopped paying marketers to import fuel into the country, NNPC now have taken almost full responsibility as per importation of fuel (which they have no business doing) but unfortunately cannot meet the internal demands of the country and they also don't have tank farms to reserve fuel...... The responsibility of importing fuel has currently overwhelmed them.

The short term solution to this current fuel scarcity challenge is to bring back fuel marketers to assist them in importation, but they are afraid of paying subsidy (which will amount to the continuation of the fuel subsidy mess they have just ended where in some cases they paid some marketers bogus claims).

This line of action will seem like a step backward again. But they have no choice. Unless our refineries work optimally, which will never happen under the current arrangement, we will always have fuel scarcity issues every now and then.

There are many other reasons I skipped because work begins tomorrow again.

ok oo

Bevista:
The company in question is Mobil Oil which is different from Mobil Producing (ExxonMobil). Mobil Oil is a wholly owned Nigerian company quoted on the Nigerian Stock Exchange. They operate within the downstream and midstream sectors of the Nigerian Oil & Gas industry. On the other hand, Mobil Producing Nigeria is a subsidiary of ExxonMobil which is an American company quoted on the New York Stock Exchange. They operate in the Upstream sector of the industry.

Just wanted to provide some perspective to guide your discussions. I also think it will be more engaging for you to discuss the merits/demerits of what was said rather than the usual 'colonial/conspiracy' banter.

Are you saying ExxonMobil does not own shares in Mobil Oil Plc??

laudate:
Are you saying ExxonMobil does not own shares in Mobil Oil Plc??

My bad. Someone has already pointed out to me that Mobil Oil is actually one of the 3 Nigerian subsidiaries of ExxonMobil. I have also confirmed this information to be true, so pardon my earlier indiscretion.