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Low oil price offers Nigeria opportunity for fiscal responsibility, others — Expert

The Nigerian Association of Energy Economics (NAEE) says the low oil price regime offers Nigeria the opportunity to be fiscally responsible and to reduce over-dependence on oil.

The President of the association, Prof. Wumi Iledare, stated this at the 9th Annual International Conference of the NAEE on Tuesday in Abuja.

According to him, the low price regime also provides the country the chance to create good governance structure and allow the Nigerian petroleum products market to be determined by the prevailing global market.

Low price problem is the opportunity for Nigeria to go off of the gorilla that we call petroleum subsidy.

“In my opinion, low price regime offers Nigeria the opportunity to be more and more fiscally responsible and let go of fiscal irresponsibility, reduce over dependence on oil and create good governance structure.

“In addition, with the requisite political will, Nigeria needs to take advantage of the low global oil price regime and allow the Nigerian petroleum products market to be determined by the prevailing market.’’

Iledare, who recommended a price of N120 per litre for petrol, said the Federal Government had no business regulating the sector.

He said managing the petroleum sector had not been easy.

He, therefore, suggested that the industry regulators be made autonomous.

The president of the association said that any regulation initiated by the regulatory bodies must have the backing of the law to help sanitise the sector.

He urged the Federal Government to always take into consideration the country’s energy needs and not focus attention only on developing the available oil and gas resources for sale abroad. (NAN)

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