Subsidy Payment Hurting Oil Industry, Economy – Operators

The government’s continued payment of subsidy on petroleum products is hurting the growth of the oil industry and the well-being of the country’s economy, operators said on Tuesday.

Various operators, who spoke at the opening session of the 2019 Nigeria Oil & Gas conference in Abuja called on the industry ”to speak up with one voice against the continued payment of subsidy on petroleum products.”

The strategic conference & international exhibition, which began on Monday, has as its theme: “Promoting Investment & Collaboration in Nigeria’s Oil & Gas Industry.”

The embattled Group Chief Executive, Oando PLC, Wale Tinubu, set the tone when he urged the incoming Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Melee Kyari, to ensure that he gives the industry the required leadership.

“Government has chosen to effectively subsidise the price of petroleum products as a social palliative. The debate about subsidy is one that needs to be made.

“The oil industry absolutely needs to challenge and champion the debate on subsidy removal. Politicians want to win votes at all costs. But, there is long-term damage to our country’s economy and the oil and gas industry with the continuous payment of petroleum subsidy. We need to ensure the subsidies are halted,” Mr Tinubu said.