STORIES By UDEME CLEMENT
Mr. Femi Olawore is the executive secretary of Major Oil Marketers Association of Nigeria (MOMAN). He speaks, in this interview with Sunday Business, on the need for the National Assembly to pass the Petroleum Industry Bill (PIB) that has been in parliament since 2008, in order to enhance inflow of Foreign Direct Investment into the country.

Some investors said recently that non-passage of PIB contributed to the decline in foreign direct investments by over 29 per cent, what is your opinion on this?

I quite agree with that, though there are other factors like the security situation in the country as well as the challenge in infrastructure development. There is urgent need for the Senate to pass the bill to enhance inflow of Foreign Direct Investments into the country. We are appealing to the lawmakers to act fast because the PIB has gone through several amendments and foreign investors would want to see it passed  into law to know the exact position of the bill.

Why would foreign investors insist on seeing the bill before coming to put their money in Nigeria?

This is because they want to be sure of their profitability. Initially, the international oil companies (IOCs) and other foreign investors were against some aspects of the bill as regards taxation and other areas. I believe that everyone wants to know how the bill would look like when it becomes a law and therefore do some calculations on how it would affect his own profitability in business. So, if the bill is not passed, nobody is too sure because if you come in and invest a lot of money and eventually the bill is against you, it means you stand to lose. Foreign investors want to know what the law says and therefore work out how it would affect them when they come in. Non-passage of the bill is discouraging because everybody is in the dark now.

Mr. Femi Olawore

We want our economy to grow and maximise outputs like the developed countries. So, we are  appealing to the lawmakers to pass the bill because it has been in the Senate since 2008. I believe all input into the bill by all stakeholders and interested parties had already been sent to the National Assembly. So, all they need is to incorporate all the views in the over riding interest of the economy and pass the bill. It is better to pass now and probably amend it in time to come, instead of waiting.

Aside from PIB, what measures should government put in place to enhance influx  of FDI?

Also, one way government could revive inflow of FDI is to improve on the security situation in the country. This implies educating Nigerians to be security-conscious, improving on intelligence gatherings and motivate security agencies and also monitor security agencies in their operations. If what we are hearing about the activities of security agencies is anything to go by, some of them may be giving out vital information to the people terrorising the nation. Also, the security situation if not improved would affect movement of petroleum products from the South to the North.  No business man would allow his trucks to convey products to the areas where bombs may start dropping because he would automatically lose his investment. Also, nobody would like to build retail outlets and tank farms in areas that are not secured.  If there is further deterioration in the security situation, it would affect  local and foreign investments in the country.

The issues on removal of fuel subsidy and full deregulation of the downstream petroleum sector had been lingering, do you see the new economic team tackling these issues?

Yes, I see the new team raising a lot of hope and eventually deregulation would take place. I am sure that all concerns of all stakeholders would be taken into consideration and adequately addressed during the deregulation process.  Once the sector is fully deregulated, everything would fall in place. Fuel subsidy would be removed and serious investors would come in. Government should not subsidise petroleum products or electricity. Instead, it should subsidise agriculture. A nation that cannot feed itself is doomed. Government should carry out the transformation in the energy sector to a logical conclusion. For example, let there be constant electricity supply for businesses to thrive. With regular electricity, diesel consumption would drop and small-scale industries would spring up and employ people. All over the world, small-scale industries employ more people and contribute more to economic growth to move the country forward. It is my sincere hope that the new economic team would focus on resolving all is
sues concerning power supply. The new team should have the political will to carry out the deregulation of the downstream sector.