NOA Sensitizes Public On Benefits Of Petroleum Industry Deregulation In Ebonyi

The National Orientation Agency, NOA, in Ebonyi State Southeast Nigeria has embarked on a sensitisation campaign to change the negative perception of people about the deregulation of the downstream sector of Nigeria’s Petroleum Industry and also to secure the acceptance of the policy by all Nigerians.

The State Director, National Orientation Agency, Mr Odonor Mathew disclosed this during an advocacy visit to the Traditional Ruler of Ekwashi Community, HRH Eze Micheal Okpoto, Eze Oha II of Ekwashi community and his cabinet members; and also the Bishop of Christ Ascension Church, Izhia Circuit, Onwe Samuel and his pastors and elders in the church, in Ohaukwu Local Government Area of the State.

There was also a sensitization meeting with 75 members of the Heads of Federal establishments in Ebonyi State.

Odono said the essence of the visit was “to create awareness for members of the public on what deregulation is all about and also on the benefits of subsidy removal”.

He also said the visit was to “conscientize members of the public on the advantages of deregulation of the downstream sector of the Nigerian petroleum industry and also keep the public abreast of the measures being put in place to cushion the short-run effects of subsidy removal”.

The State Director informed the stakeholders of what fuel subsidy is all about, why it should be removed and the gains of fuel subsidy removal.

Read Also: Commission Lauds Subsidy Removal, Calls for Palliatives

The NOA Management Team also used the opportunity to enlighten the people on the need for youths to register for the National Youth Volunteer Service which will help them develop the culture of volunteerism and the spirit of service to the community and the nation at large.

Odono informed them that after registration, the youth will undergo online training to develop their skills in different areas of life.

Benefits of Subsidy removal

The State Director also highlighted the benefits of subsidy removal to include:

• Freeing up resources for other sectors of the economy.

• Grow Domestic Refining by creating a market reflective downstream which invariably stimulates more downstream investments, especially in the domestic refining space, thereby creating more jobs, prosperity and growth.

Establishments of domestic refineries will produce more petroleum products, thereby reducing Nigeria’s dependence on imported fuel.

The domestic refineries will boost the country’s economy”

• Reduce Gasoline Smuggling and Diversion: The removal of fuel subsidies eliminates the unhealthy price arbitrage with neighbouring countries thereby preventing the diversion and smuggling of gasoline outside the nation’s borders which bleeds the economy.

• Reduce Corruption: It also reduces corruption surrounding internal product diversion as many marketers procure gasoline at subsidized regulated wholesale prices but still sell at deregulated retail prices.

• Resource Rebalancing: The rich benefit more from the subsidy than the poor as they have a higher number and capacity of vehicles to buy more gasoline; removal of the subsidy creates an opportunity to redistribute this benefit directly to those who need it more”

• Subsidy removal enables responsible gasoline consumption which reduces waste as the prices are more market reflective and the demand for the product will rebalance itself with the new price realities.

• Subsidy removal allows the full recovery of upstream revenues which enables reinvestment required to grow our national petroleum production and reserves and overall forex earnings.

• Strengthen the Naira: Growth of our forex earnings combined with a reduction in product consumption reduces pressure on forex thereby strengthening the Naira.

• Open market reflective prices bring in more players and create a more efficient market thereby reducing fuel scarcity and its adverse effects on the Economy.

• Subsidy removal reduces the growing and unsustainable budget deficit and consequently, the debt burden thereby creating a more robust economic and sustainable future.

• Subsidy removal will free up public funds for more meaningful infrastructure and developmental programmes that stimulate industrialization, create jobs, economic growth and social prosperity. Massive creation of jobs for Nigerians.

In their separate remarks, the HRH Eze Micheal Okpoto, and Bishop of Christ Ascension Church commended NOA for the visit and promised to extend the awareness to all the nooks and crannies of the LGAs using the village heads, cabinet members, pastors, elders and deacons in the various parishes.

 

 

 

Emmanuel Ukoh