Nex

please do not bring up information of which there are no facts to back up please.

Total in Zambia, Shell and Chevron in South Africa, BP in African Countries, CNOOC in Sudan, are these companies operating in an environment where there's no free market? Where they produce and after that, their sale price will be fixed? No! They refine and sell according to demand and supply.


If we stop dictating prices of refined products and allow the laws of demand and supply to shape the pricing of petroleum products, then producers will feel justified to enter the market

U have skewed knowledge of free market. The fact that Nigeria has got NNPC makes the market monopolistic and regulated. Why are folks like  u advocating only for downstream sector viz distribution of refined products? Why not deregulation in exploration, lifting of crude oil and distribution of refined product?  Oil is the only thing  Nigeria can deliver to its citizens without charging international price for it.  Why would Nigerians pay  NYMEX ascribed value for  crude oil that is being dug up from our back yard. Garri cannot be  subsidized because the FG does not control means for producing garri in Nigeria, but NNPC does in petroleum production in Nigeria. Could u imagine garri producers charging international prices for garri?  FG is paying for the price differential because they have refused to fix the refineries or let others buy and fix them. US is the capital of free market, but  AMTRAK-passenger railway is solely controlled and subsidized by the govt,  power generation is  controlled by   govt in France. Eskom- power company in South Africa is wholly owned by  South African govt. In  the US,  farmers get about  40cents for every  dollar spent through subsidies.  If petroleum marketers like OANDO could make $1.5bn in profits who says that there is no money to be made?  Also why are major oil companies doing refining in Venezuela where  it takes less than N1000 to fill a gas whereas in Nigeria its about N12,000? You are advocating for a govt that doesn't  want to take any responsibility to be let off the hook for the problems it solely created.

In fact introducing a free-market economy would make the oil industry more tranparent and cut down the need to make transfer payments which by themselves foster corruption.

The Petroleum ministry would then be able to devote its time and energy to ensuring that the operators abide by the rules of the market, and leave the operation of the industry itself to the professionals.