Fakoyejo OlalekanThe Chairman of the Major Oil Marketers Association of Nigeria (MOMAN), Olu Adeosun, said the fuel subsidy removal will increase the Federal Government’s revenue from the oil industry.
Adeosun stated that the removal of fuel subsidy, which ushered in the complete deregulation of the oil industry has set clear rules for oil marketers.
So, oil companies that breach the industry’s rules will be sanctioned, and the penalty accrued from the sanctions will serve as revenue to the government.
He said the Petroleum Industry Act (PIA) has brought clarity and companies in the industry are already being sanctioned and held accountable.
“If you look at the recent development from regulators in the industry, there is a lot of positivity regarding what has been done.
“I can assure you that companies in the industry are being sanctioned. As we look into the PIA world, the only way to hold players accountable is to be clear on the rule.
“I can assure you that more revenue will come to the government. I don’t cynically mean this; some sanctions and fines for offenders in the sector. Given the visibility it has today, we have to believe that the PIA will work,” Adeosun said in an interview with Channels TV.
Meanwhile, Prime Business Africa previously reported that Adeosun said the ripple effect of removing the fuel subsidy and unifying the multiple foreign exchange rates will not last long.
He stated that once the government tackles some other fundamental issues such as insecurity, the long-term benefits of the policies will be more than the pain experienced at the early stage.
“I believe that in the long-term, the prospects are there; the pain we are going through now over fuel subsidy removal, FX unification, will not last. Hopefully, we would get crude productivity up, deal with the issue of insecurity and other big fundamental issues that are holding Nigeria back,” the head of the major oil marketers said.
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