Deregulation: WIEN endorses market reforms, mobilizes female investors

Aniekan Imeabasi

Nigerian female investors and professional s in the energy sector, Women in Energy Network (WIEN), has urged the people to accept the ongoing reforms enunciated by President Bola Ahmed Tinubu’s administration of the federal government as the only path out of the frequent fuel price shocks and supply crises in the economy.

The group which vehemently advocates enhanced space for women in the male dominated energy sector also calls on female investors and enterprise managers to explore new commercial opportunities in the unfolding reforms in the domestic energy market where incentives exist for supply of new energy forms.

President of the group, Mrs Funmi Ogbue, declared in a statement issued by the Director of Publicity, Mrs Charlotte Essiet, that deregulation of the domestic fuel market falls in line with the provisions of the Petroleum Industry Act (PIA), adding that liberalization of the sector is also supported by several policies on expansion of domestic gas utilization.

“We observe that the sensitive points in the reform process include removal of fuel subsidy, deregulation of retail prices and liberalization of play,” the group stated, saying that the measures are crucial in steering the country into the paths of rapid recovery and accelerated growth.

“WIEN congratulates President Bola Ahmed Tinubu on his inauguration following the 2023 general elections. We are excited at the enthusiasm of the new president to carry out urgent reforms in the critical sections of the economy. This shows that he is prepared and determined to steer the country into the paths of rapid recovery and accelerated growth,” WIEN stated.  

The group pointed at urgent need to accelerate the process in order to turn in the dividend phase of the reforms, balance out the pains with benefits and achieve unified stakeholders’ position on the process.

WIEN acknowledged the pains and shocks that accompany the ongoing reforms in the market, especially with the fuel subsidy removal. It however noted that the overall goal of the domestic fuel market reform is well intentioned. It also outlined the full economic benefits that would come from the reform process.

“The emerging domestic fuel market is the expected result of over 20 years of strong advocacy mounted by all stakeholders in the economy to dismantle public sector monopoly and guarantee broader opportunity for viable investments in providing the Nigerian business environment with wide ranging fuel options for home, social and business application.

“Deregulation of market prices and liberalization of supply which are key prizes of the ongoing reforms will provide the highly needed congenial atmosphere for implementation of stalled programmes aimed at availing the economy new energy choices like natural gas products for transportation, power generation and industrial application.

“Emerging commercial competitiveness in the market will undoubtedly spur local and international investments in country’s Decade of Gas programme, boost production of new energy forms and solidify Nigeria’s position in the global movement towards low carbon energy. The overall economic benefits in terms of employment, patronage of local goods and services, and ancillary small and medium scale business opportunities would far outweigh the poorly managed fuel subsidy which has created more damage to the economy and actually caused more suffering to the people.

“A deregulated and liberalized domestic fuel market will no doubt save money for government, enhance price competition, promote service efficiency, phase out perennial fuel scarcity and expand the capacity of the market to absorb more investments.

“WIEN believes that Nigerians need more opportunities and ambient business environment than they need subsidies to thrive. This has been demonstrated by the large number of Nigerian youths who have migrated out of the country and succeeded in foreign lands where they are not direct beneficiaries of social security cover.”

In appealing to the people to be supportive to the new government as it sorts through strategies to deliver the best economic dividends from the country’s petroleum resources, WIEN noted that reapplication of the poorly managed fuel subsidy funds to creation of enhanced social services, development of facilities and infrastructure and enhanced electricity supply would yield greater impact in the social economy.

“We believe that deregulation and liberalization are the only way forward for the domestic fuel market in view of the prevailing circumstances. We also call on government to quickly put measures in place to urgently deliver the realizable social and economic dividends of the market reforms to alleviate the impacts on the people,” the group demanded.

It also demanded the government to hasten the market transition process, weed out all remaining impediments to fair play and best market practices, and shorten the time for delivery of convincing quick wins to the people.

“The emerging market regulations must necessarily address grave concerns about discriminatory foreign exchange rates, creation of market supply oligopoly, huge demurrages at import reception ports, and barriers to new market entrants, especially women,” Mrs Ogbue stated.

While calling on government to support female players in the industry, Mrs Ogbue challenged women in Nigeria to enter the fray in the new market environment.

“With the new vista of commercial opportunities opening up in the domestic fuel market, we call on all capable ladies in the country to pick up the gauntlet and explore investments in the downstream petroleum industry. WIEN is convinced that more women in the industry will come with greater regulatory compliance especially on health, safety and environment standards.

“Safety and forecourt standards are natural to us.

“We therefore see the ongoing market reforms as first opportunity for the new administration of the federal government to launch off its gender diversity plans in the industry by easing entry processes for women seeking to participate in providing the economy variegated energy forms through the market,” she declared.