Abuja – The Vice Chairman, Senate Committee on Petroleum (Upstream), Senator Kabir Marafa, has called for the removal of oil subsidy to end the lingering scarcity of the product in the country.

Marafa (APC Zamfara Central), who spoke in Abuja, also called for the deregulation of the oil sector.

He said the unending subsidy claims were as a result of the non-deregulation of the sector. According to him, fuel meant for Nigeria is being diverted to other African countries, where it sells at a higher price.

He said: “With all sense of responsibility, I think Nigerians need to stand up and say enough of this hypocrisy.

“This thing called fuel subsidy; I do not believe there is one. I do not believe it is benefiting the masses and it does not help them in any way, as far as I am concerned.

“So long as fuel is selling at a lower price than some other neighbouring countries, you will continue to have fuel going out through the borders.

“Until the neighbouring countries get enough, the local markets will not be served. If Nigerians want to help this incoming administration and if this incoming administration wants to help, I think we need to look at the issue of this subsidy and do away with it once and for all.

“If you deregulate the market, you allow whoever wants to bring petroleum products into the country to go ahead and bring it; you regulate only and fuel will not sell as much as it is selling now.’’

The telecom example
He cited the transformation in the telecommunication sector from near comatose landlines to the GSM phones that had reached even the remotest areas in Nigeria as an example.

The lawmaker said: “Before it, everyone will tell you that if there is no NITEL, the common man will not make call. But today, you have people with telephones even in remote villages.

“So also with this fuel thing, we may suffer in the first one or two months. But as the thing starts taking its roots, these things will all go away, our local refineries will start functioning and all these cartels will go.”

He said that with deregulation, prices would stabilise and petroleum products would be readily available and competition would force down the price of the commodity.

Meanwhile, fuel subsidy payment was not captured in the 2015 budget passed by the National Assembly on April 28.