Page 14 - DMEA Week 09 2021

DMEA NEWS IN BRIEF DMEA

FUELS marketers to import products, thereby making PETROCHEMICALS
NNPC the sole importer in keeping with its
CSOs Back NNPC on Petrol statutory role as marketer of last resort. OCP, Nigeria sign deals for
“This would most likely put NNPC in
Price Deregulation a very bad spot financially and eventually fertilizer partnership
lead to a situation where it would be difficult
A coalition of civil society organisations to further import products. The obvious Morocco’s state-owned phosphate and
(CSOs) in the country yesterday endorsed implication of that is fuel scarcity and the fertilizer group OCP is moving forward
the current deregulation of petrol prices by return of fuel queues. with its commitment to assist the Nigerian
the federal government, saying the Nigerian “If this happens, organised labour that government to achieve its goal of developing
National Petroleum Corporation (NNPC) is presently resisting deregulation would be its agricultural industry.
risks bankruptcy if it continues to pay the forced to castigate NNPC for not supplying Nigeria’s Minister of Petroleum Resources
difference between the product’s landing cost enough fuel to guarantee zero fuel queues Timpire Martin Sylva is leading his country’s
and pump price. In a press briefing in Abuja, and for not making a profit at the end of its delegation for a working trip that will run
the Coalition of Nigerian Civil Society for financial year.” until March 6th as part of the partnership
Petroleum and Energy Security maintained It said instead of a stance of outright between OCP and Nigeria’s government.
that the deregulation of the petroleum opposition to deregulation, labour should During the visit, the Nigerian delegation
downstream would liberalise the sector and partner government to explore how to achieve and OCP will discuss the “next steps”
allow petroleum products marketers to source patriotic, people-centred deregulation. The regarding the multipurpose industrial
their supplies from anywhere and sell at prices coalition also advised labour to leverage the platform in Nigeria.
dictated by prevailing market forces. new government policy for the expected The Moroccan fertilizer group wants to see
The group stated that the current resumption of Nigerian refineries, approval of the ammonia plant in Nigeria operational by
agitation of labour that government should modular refineries, and Dangote refinery. 2024.
withdraw the deregulation policy meant that The group explained that once the foreign As part of the project, OCP and Nigeria
NNPC would continue to absorb the cost exchange issue that made it difficult for seek to produce 750,000 tons of ammonia
differentials, stressing that this will not do major and independent marketers to engage and one million tons of phosphate fertilizers
Nigeria any good. in importation of petroleum products was annually by 2025.
Convener of the coalition, Mr Timothy resolved, the gains of deregulation would kick On Monday, OCP and the Nigerian
Ademola, advised the labour leaders in and Nigerians will be better for it. delegation signed a set of agreements to boost
spearheading the resistance to deregulation to “The market stabilisation that has been cooperation in the fertilizer sector.
realise that it had largely stabilised petroleum brought about by the past one year of The signing ceremony took place at the
products supply in the last one year. Ademola deregulation is strong assurance that full Mohammed VI Polytechnic University
urged Nigerians to be patient with the policy, deregulation is the way to go if Nigerians are (UMP6).
explaining that once foreign exchange is to enjoy the full benefits of their hydrocarbon The agreements include a memorandum
stabilised, everyone would begin to see the wealth,” the group said. “Resisting of understanding (MoU) between OCP
fruits of deregulation and a free downstream deregulation may only slow down our Africa, the Fertilizer Producers & Suppliers
market. national progress in this regard,” it added. Association of Nigeria ((FEPSAN), and the
The coalition stated, “The competition It maintained that the current rise in the Nigeria Sovereign Investment Authority
arising from that (deregulation) would have price of crude oil in the international market (NSIA).
helped to force pump prices down to the would inevitably cause the price of petrol to The agreement seeks to “commit the
benefit of the citizens. But the scarcity of go up in the local market. second phase of the Nigerian Presidential
foreign exchange has made it difficult for the THIS DAY Fertilize Initiative,” OCP said in a statement.

P14 www. NEWSBASE .com Week 09 04•March•2021