The Nigerian economy is largely sustained by the nation’s energy sector, with the petroleum sector contributing the larger percentage to this dependency ratio.
Right from the country’s independence on October, 1st, 1960, from one government to the other, policies have been initiated to ensure that this very important sector upon which the Nigerian economy strive remain stable and consistent.
In the last one year, and keeping to this track records by successive administrations in the past, the president bola tinubu’s government has embarked on series of reforms in the nation’s energy sector spanning through oil and gas, electricity, minning, and other related sectors with direct or indirect bearing to Nigeria’s energy sector value chain.
Precisely, on May 29th, 2023, exactly one year ago, the president during his inauguration speech gave the now famous directive, where he spoke in clear terms that, “Petroleum subsidy” is gone, that singular pronouncement has completely changed the face of the petroleum downstream sector in Nigeria, one year down the line, with subsidy gone and with the high hope that followed that zero policy on subsidy pronouncement , many are still asking , what has become of the huge savings expected from subsidy removal on petrol, that question remained unanswered till date, as confusion continue to trail whether or not, government indeed has actually stopped paying subsidy on petrol.
As parts of palliative measures adopted by the tinubu’s administration to cushion the impact on citizens arising from fuel subsidy removal, a strategy designed to address high cost of transportation, being a direct fallout on zero policy on fuel subsidy, a presidential initiative on CNG vehicles was established to create a template upon which vehicles can be converted from fuel compliant to compressed natural gas compliant which is relatively cheaper in cost when compared to fuel, though that initiative has been working round the clock in the last one year of the current government, but not much has been seen, in terms of conversations from fuel compliant vehicles to CNG compliant vehicles leaving Nigerians helpless as cost of transportation continue to hit the sky, inflation has also eaten deep on cost of commodities in the last one year of the president bola tinubu’s administration, another direct fallout from the policy on fuel subsidy removal by the present government.
In the last one year, citizens have woken up to experience sudden fuel scarcity, a development that has kept many wondering if government was actually still paying subsidy on petroleum products, the consequences of these sudden scarcity on the general well-being of most citizens has been monumental has some have had their businesses closed within such periods, a development that continued to raise serious economic concerns amongst several families across Nigeria.
Key developments have also been witnessed within the power sector space, where the president in an attempt to ensure effective distribution of electricity across board few months into his government in 2023, signed the new electricity act, which empowers states to generate, transmitt, and distribute electricity, this new law for the nation’s power sector has been commended by various stakeholders in the electricity sector value chain, regrettably, one year down the line, only abia state under the leadership of governor Alex Otti has taken advantage of the new electricity act to distribute electricity to residents in that state.
The debate on whether or not subsidy should be sustained on electricity tarrif has also dominated public policy environment in the last one year, with the minister of power, adebayo adelabu insisting in different fora that government may not be able to sustain a subsidy tarrif regime for electricity consumers nationwide going forward , and the direct policy to confirm this government stand on this position , is the recent increase in the cost of tarrif for band A category of electricity consumers across the country, a development, the Nigerian electricity regulatory commission said was based on inflation exigencies , and by implications indicating that government, was no longer interested in bridging any cost gap unbehalf of citizens.
The Nigerian labour congress on it’s part has consistently maintained it’s position on the electricity tariff increase, to the effect, that it will not accept any upward adjustment in whatever form, with discussions on the subject stalemated at the moment.
The energy sector in Nigeria to many has not really fared well, with citizens calling for urgent interventions that could possibly drive development in the sector as quickly as possible, but this in itself as also raised other critical questions on how effective is the Nigerian content monitoring development board, NCMDB, with a mandate to ensure local content development in the Nigerian oil and gas sector going by the 2010 act, the NCMDB has not been able to achieve significant Sucess in this regards, and it is the expectation by most Nigerians, that the new team inaugurated by President bola tinubu in the last one year urgently give direction to Nigeria’s attempt at deepening local content penetration for Nigeria’s oil and gas sector , just as refineries, continue to work far below optimal capacity, despite assurances by this current government that refineries will work optimally, with several deadlines for this to happen continually changed at will.
Though president bola tinubu just yesterday, May, 28th, met with top executives of Exxon Mobil, where he reaffirmed his administration’s commitment to birthing a new and improved oil and gas sector for Nigeria, the believe by most Nigerians is that not much has been done by the government to activate and fast track policies that could quickly address their concerns for the nation’s energy sector, leading many to advice that as the government begins it’s second year journey, a more robust template should be adopted that will erase all doubts, and create a new beginning for the nation’s energy sector landscape.
