Mr Sylva also spoke on his one year in office and what to do going forward.
PT: Shortly, you will reach a milestone. What do have to tell Nigerians about your one year in office?: We have a lot to tell Nigerians in one year. I can tell Nigerians we have been able to take the FID on the construction of Train 7 of the Nigeria LNG project. That is an additional investment of over $10 billion. By any standard, that is a major achievement.
It took a lot engagements with all our partners to get to some consensus on some of the gray areas. Knowing that the country needed this investment, we had no option than to put in extra effort to engage our partners and all the financial institutions – the FIRS , Federal Ministry of Finance and everybody – to be able to get their concurrence. At the end, we were able to take that FID, which I believe is one major milestone this administration is so proud of.
: That’s another major achievement I was coming to. This is something the government has always looked for a window for. And COVID-19 pandemic provided the most appropriate window we took advantage of. In U.S. and U.K., they recommended retail price for every commodity. So, for a very strategic commodity as petroleum products, we must have a recommended retail price for the marketers, so that they will be selling within that price band, and not over-profiteer off the people. If the government makes the mistake of allowing the marketers to fix prices and sell petrol at any price they want, they will be profiteering at the expense of the people.
So, as a government, we must be there to moderate things and ensure consumers are protected at all times. For example, if the AGO prices are going too high, and the marketers are beginning to take the prices to unimaginable high levels, NNPC will just import some cargoes of products and sell at a lower price, and of course, everybody would follow the NNPC price.So, that is the way the NNPC regulates the market. In a way, the NNPC is also part of the government. But, they are not a regulatory agency. The regulatory authority in this case is PPPRA. NNPC is a player in the market.
That recommendation is arrived at with the collaboration of MOMAN , DAPPMAN , IPMAN and all the players in the market with the government. It is always a joint decision, from which the PPPRA brings out the advice. So, if that is introduced, then people will have choices. That is what the government is going further to do. This is like a revolution to bring an option for the people between LPG and CNG. If, despite these options, people insist on using petrol in their cars, that is their decision. The government has played its part.
All one will need will be to invest in building gas pipelines in a certain areas to transport gas to the filling stations and charge thru put for it. The opportunity to invest in that sector will expand as the infrastructure will not be built by the government. The government will provide the enabling environment for the private sector to come in and build the infrastructure.
Let’s face it. Deregulation was really hurting the economy. One buys a product for so much and sell it a loss at a pump price, because of subsidy. PT: Does the government foresee the price of petrol going up to pre-COVID-19 level? If that happens, will fuel subsidy return?: No no, no. I have told you the gains of deregulation already, to the economy and what government is trying to do. So, why would the government want to go back on a policy that is good for all Nigerians? It is only Nigerians that don’t mean well for Nigeria that will come out to say something against deregulation.
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