Former Venezuelan Minister of Mines and Energy Dr. Alirio Parra, has said that it was a smart decision from the Federal Government of Nigeria to open up the downstream sector of the oil and gas industry for private investors.
Parra made the
statement in Abuja during a forum at the weekend, maintaining that the
liberalization of the downstream sector in the country is a bold testament to
the fact that oil is a market-driven commodity.
Group General Manager,
Group Public Affairs Division of Nigerian National Petroleum Corporation, NNPC,
Garba Deen Muhammad, quoted Parra in a statement as saying, “One really
important change in the oil and gas industry in Nigeria is the decision by the
Federal Government to open the domestic market for competition.
“I am not necessarily
talking about the elimination of subsidy, but opening the market, is a
statement that oil is market driven and that with time, it is going to be to
the benefit of Nigeria, and to all Nigerians.”
Parra noted that
liberalizing the market will encourage more players to bring in petrol which
would in turn bring about competition in the price of the commodity.
He added, “Soon people
will start to rush out to bring in oil thinking they are going to make a huge
profit but as more oil comes into the market, things would start to stabilize
and slowly it would find its own level at a price no one can forecast but
surely it would be a competitive price.
“I think this is a
historic decision and it is one of the smartest that Nigeria has taken in
recent years.”
It is expected that
soon, the liberalisation of the downstream sector will among other benefits
bring about market stability and Improve fuel supply.
Parra also nodded to
the selection of former Group Managing Director of the Nigerian National
Petroleum Corporation, NNPC, Dr. Mohammed Sanusi Barkindo by the Federal
Government as Nigeria’s candidate for the Secretary General of the Organization
of the Petroleum Exporting Countries, OPEC.
He said, “I think that
Barkindo will make a fantastic Secretary General, he will return the dignity of
Nigeria in the International service, he will be a Secretary General of huge
category and an important figure in the international oil industry.”
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