Transparency Lacking In Oil Sector, Difficult To Determine Appropriate Petrol Price – Prof Iledare

It will forever remain a puzzle determining the appropriate price Nigerians should pay for a litre of petrol in Nigeria, owing to the fact that almost everything regarding its operation is shrouded in darkness, an industry expert, Prof Wunmi Iledare has posited.

Iledare, a Professor Emeritus in Petroleum Economics and Policy Research at the Centre For Energy Studies Louisiana, United States, spoke as Guest Speaker on the popular monthly interview discourse, BOILING POINT ARENA on Sunday night.

He said lack of transparency within the Oil and Gas Sector especially proprietary data which are not being divulged to the public are factors precluding the citizenry from getting adequate price value for the essential commodity, despite nature’s endowment.

The topic of discourse was: “The Nigerian Socio-Political and Economic Quagmire: What are the Rescue Options?”

The current affairs programme which held via Zoom and broadcast live on a radio station, Sweet 107.1FM, was hosted by a media professional and public relations consultant, Dr Ayo Arowojolu.

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Foremost traditional ruler, the Olowu of Owu Kingdom, Oba Prof Saka Matemilola was the Keynote Speaker during the once-in-a-month programme which also featured another Guest Speaker, Dr Oluwatoyin Jokosenumi, a former Director at the Central Bank of Nigeria.

Prof Iledare was asked as to why a local refinery such as Dangote Petrol cannot sell for a low price despite the non-inclusion of forex component and the oft-noised issue of landing cost, to which he responded in Yoruba: “E ma tuwo rara” which literally speaking, means, “Don’t go there”.

To the erudite professor, there is a general lack of transparency and a lot of complicated intricacies in the sector.

Prof Iledare said: “There is a general lack of transparency in the oil and gas sector. E ma tuwo rara. Don’t go there at all because you will not like what you see, and perhaps suffer the consequences too. Understanding is deeper than knowledge!

“What you have in Nigeria is basically what I call transactional leaders instead of being transformational. You see, when you have a transformational leader, there’s a shared vision.

“We are having a crisis in the energy sector, especially the oil and gas sector, and the President is the main actor. This is a mis normal. That is not what the Petroleum Industry Act (PIA) anticipated. The Presidency is not supposed to be the policy institution of the oil and gas industry. It’s supposed to be the Ministry of Petroleum.

Prof Iledare lamented that there is not enough public education in the industry and what has been pervading is economic populism whereby both government and the populace favour subsidy regime that has left the country perpetually under a string of poverty as borrower.

He condemned the current ding-dong talks between NNPCL and Dangote Group, saying it is unfortunate that Dangote is being discouraged and treated in bad manner.

“The Government blaming Dangote is a mistake because Dangote is a patriotic man that should be celebrated rather than condemn. The government must work with him such that there will be a solution to our petroleum downstream market”, he stressed.