SENATOR (DR.) PATRICK IFEANYI UBAH's VIEWPOINTS ON TODAY'S PLENARY AT THE SENATE.

On the floor of the Senate today being July 23rd 2019, I co-sponsored a motion on “Exiting Fuel Subsidy: Ensuring Self-Sufficiency in Domestic Refining of Petroleum Products”. This motion was sponsored by Senator Oko Rose Okoji of Cross River North.

In my contribution, I advocated for the urgent need to invite major stakeholders in the downstream sector such as;the Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria(IPMAN), Depot and Petroleum Products Marketers Association(DAPPMA) and Department of Petroleum Resources (DPR) to discuss the ideal approach to Liberalization of the downstream sector which can help eliminate the N1.7trillion subsidy payment currently incurred in the process of massive fuel importation. Full liberalization of the sector would address inflation, eradicate corruption and ameliorate the economic uncertainty that has characterized our nation.

Furthermore, I gave an analysis noting that the citation of 5 domestic modular refineries with a “$1billion support fund” from the Federal Government would eliminate the endemic fuel importation problem we are facing in Nigeria. In my analysis, I stated that each modular refinery out of the 5 will be collectively run and managed by 10 indigenous investors with proven capacity under a “10 year repayment plan” in which these 50 companies will mortgage their assets as guarantees for repayment of the loan. This pattern if adopted, will elevate these 50 indigenous marketers from marketing to manufacturing, hereby creating employment, eliminating corruption and increasing efficiency through innovation and healthy competition.

I further reminded the Senate that it would be very difficult for 10 indigenous companies to collectively engage in any shady deal that can jeopardize their hard earned assets. I noted that this strategy if adopted, will generate an increased revenue of N250-300 billion for Nigerians monthly and aid the Government in the actualization of the N30,000 minimum wage benchmark.

I also noted with dismay the sardonic fact that Nigeria as the “Giant of Africa” still gives crude oil to Coted'voire to refine for us. Conclusively, I also emphasized the need to adopt the “Ship to Shore” refinery pattern (which has been adopted by Dangote) as against the “pipeline to refinery” model which has proved ineffectual and disastrous as a result of incessant pipeline attacks and lack of transparency and accountability on the actual amount of crude oil sent and received.

Corrupt country! With all our refineries, we still ship crude to Coted'voire refinery. Nigeria needs help