President Buhari of Nigeria is having a good year in Aso Rock. Yes, I understand the agonies of the free-fall of Naira and the incessant insecurity paralyses in Nigeria. But if you look at the whole big picture, Buhari has done more in the last one year, economically, than he had done since the late 1970s when he was a petroleum minister in Nigeria (interestingly, he holds that position as I write…youth, continue to dream!).
While Nigeria’s problems cannot be summarized in one line, the fact is this: Buhari is showing energy and leadership in some fundamental economic areas. If he follows through, Nigeria will have a better structure to build upon. Today, we are learning that he has FULLY deregulated the petroleum sector: “the downstream arm of the oil and gas sector had been fully deregulated…PMS price would be determined by the forces of demand and supply and the international cost of crude oil.’ That is not a small feat when you know how many oil mafia groups he might have annoyed.
The Federal Government is no more going to be releasing guiding price bands for the sale of Premium Motor Spirit, popularly called petrol, at filling stations.
It disclosed this in Abuja through the Petroleum Products Pricing Regulatory Agency, adding that based on this, the downstream arm of the oil and gas sector had been fully deregulated.
Responding to questions from journalists during a briefing at the headquarters of PPPRA, the agency’s Executive Secretary, Abdulkadir Saidu, stated that going forward, PMS price would be determined by the forces of demand and supply and the international cost of crude oil.
Recall a few weeks ago, it was electricity. Yes, he increased rates, making it clear that the government cannot subsidize electricity for the citizens. Personally, I support these calls because they are fundamental for a more efficient economic system.
Of course, while deregulation may not be perfect, it is high time Nigeria tries something new as what we have now is not working. The really next call is EXECUTION and solid implementation.
Well done Mr. President. Put more efforts like this on insecurity and anti-corruption; this nation can work.
Ndubuisi Ekekwe Well what can we say? We all want the best for the country and deregulation generally is not a “wise” plan for any government as it is costly, not efficient economically and allows for corruption within the industry
My Response – “We all want the best for the country and deregulation generally is not a “wise” plan” – Let us try something else as what we have had since 1960 is NOT working. Allow full deregulation to fail first.
1. Advance your career with Tekedia Mini-MBA (Sept 13 – Dec 6, 2021): 140 global faculty, online, self-paced, $140 (or N50,000 naira). Click and register here.
2. Click to join Tekedia Capital Syndicate and own a piece of Africa’s finest startups with a minimum of $10,000 investment.3. Register and join me every Saturday at Business Growth Playbooks w/ Ndubuisi Ekekwe (Sept 4 – Oct 23, 2021), Zoom, 4.30pm WAT; costs N20,000 or $60.