The Chief Executive Officer of Ardova Energy, Adeosun, acknowledged that the issues of foreign exchange and fuel subsidy had been addressed, but said that other challenges still needed attention.
In an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos, Adeosun emphasised the need for a sustainable welfare package for Nigerians.
He highlighted the importance of productivity in the country’s development and called on the government to address issues such as insecurity, increase productivity in the oil and gas sector, and curb the rising cost of food and transportation.
Adeosun also commended the inauguration of a committee on fiscal policy and tax reforms and appealed to the government to reconsider the 7.5 per cent VAT on diesel, as it would further burden Nigerians.
He suggested suspending VAT on diesel until the impact of the petrol price increase is overcome.
Adeosun urged the government to consider subsidies for transportation and tackle challenges such as insecurity, crude oil theft, as well as fuel and power subsidies.
He mentioned that MOMAN members have the capacity to import petrol into the country, while importation licenses are renewed on a quarterly basis.
He added that the challenge to importation would be the balanced wind-down of NNPCL imports as the private sector takes the burden, while waiting for the onboarding of local refineries.
“The reality is that many of us have importation licenses that have never lapsed. We renew them on a quarterly basis via the NMDPRA portal.
“Some of us are also importing diesel, so we need these licenses. The licenses cover multiple products such as ATK, PMS, and AGO.
“The regulator will tell you that we need them even when we are receiving products from the Nigerian National Petroleum Company Limited (NNPCL), particularly on the high sea,” said Adeosun.
Adeosun also emphasised the need for efficiency in the importation and delivery operations process to offset the shortcomings in forex rates.
He called on the government to implement favorable regulatory frameworks, provide incentives for renewable energy projects, and encourage research and development in clean technologies.
