13th May, 2016
The Institute of Chartered Accountants of Nigeria (ICAN), Ikeja District Society, has today commended the Federal Government over the deregulation of the downstream sector of the petroleum industry.
Mr Gbenga Adewole, the Chairman of the society,speaking in Lagos said that deregulation would ensure product availability across the country.
He added that this would also enable investors in the downstream sector to come in and do business, adding that this would encourage job creation.
He, however, said that the government should have allowed the forces of demand and supply to determine the price instead of fixing the price for the product.
Speaking, Adewole said, “I support deregulation of the petroleum sector but what government did is partial deregulation and not total because you don’t deregulate and still dictate the price.
“After deregulation, it is the forces of demand and supply that will determine the market prices.
“By fixing the price, you are telling marketers to sell petrol for N145 per litre. “All marketers will be working within that fixed price instead of allowing the forces of demand and supply to dictate the price.”
He urged the government to do all within its power to ensure stability of foreign exchange, adding that only stabilised foreign exchange would encourage marketers.
He appealed to Nigerians to support the government in its effort to ensure total deregulation of the downstream sector.