Date Published: 12/23/09

THE PRESIDENCY

PETROLEUM PRODUCTS PRICING REGULATORY AGENCY (PPPRA) 

NEWS RELAESE

Amadu Ali takes over as PPPRA Chairman

…Urges Nigerians to Support Deregulation

(L-R) OUTGOING CHAIRMAN, PPPRA, CHIEF RASHEED GBADAMOSI, INCOMING CHAIRMAN, SENATOR (DR) AMADU ALI, AND THE EXECUTIVE SECRETARY

Nigerians have been urged to appreciate the need for the deregulation of the downstream petroleum sector, so as to curtail the heavy drain on the nation’s resources, arising from the huge money expended as subsidy on petroleum products. The newly appointed Chairman of the Petroleum Products Pricing Regulatory Agency (PPPRA), Dr. Amadu Ali, made this call during the handover ceremony between him and the outgoing Chairman, Chief Rasheed Gbadamosi.

       Dr. Ali who described the reservations being expressed by Nigerians over the removal of subsidy on petroleum products as not surprising, assured that the planned deregulation would improve the lots of the citizenry greatly, as the savings would be channeled to the provision of infrastructure and social services. He called on Nigerians to support the speedy passage of the Petroleum Industry Bill currently before the National Assembly, adding that part of the issues the PPPRA Board will be addressing is the need to create a conducive environment for the enhancement of the nation’s refining capacity through private participation.

       Dr. Amadu Ali while commending Chief Gbadamosi for the feats recorded in the downstream under his Chairmanship, pledged to build on the legacies of the outgoing Chairman towards the attainment of government’s reform agenda for the sector.

       The outgoing Chairman of the PPPRA, Chief Rasheed Gbadamosi, said, “we cannot continue to dissipate the funds we have for capital development on pure consumption activity,” adding that, “it is not in the nature of things to narrow the space in the industry.”  He therefore called for the opening up of the downstream oil sector through deregulation, to eliminate the ills of the sector.

       Chief Gbadamosi recalled that the embarrassing experiences of long queues, black marketeering, products adulteration and smuggling were all effectively eliminated following the partial deregulation of the downstream, until they began, regrettably, to manifest recently. He explained that during the period 2001 to 2008, the sector witnessed a number of achievements some of which were: products availability nationwide; massive investments in downstream logistic facilities; greater participation by other Stakeholders in products procurement, storage and distribution; as well as the creation of a level playing field. Other achievements, he added, included employment generation; enhanced government revenue; value added service at pump stations; increased activities for the establishment of new refineries; as well as effective exercise of mediatory role among stakeholders for serenity in the industry. 

       Chief Gbadamosi who commended Dr. Amadu Ali for rising up to the challenge of accepting his appointment as PPPRA Chairman said, “you have done an outstanding job of serving this nation in various capacities in the past decades, and as always, you have done the job with great commitment. I am convinced that this assignment will not be different.”

       The PPPRA Governing Board comprises 26 members representing various interests such as Government, Petroleum Marketer Groups, Organised Private Sector, Labour, Transporters, and Employers. 

       SIGNED:

       Yusuf Mu’azu

       For: Executive Secretary

       23th December, 2009