BY ABUBAKAR GAYA

IT is heart warming that on the matter of deregulation of key sectors of the economy, there are references. A simple case is the telecommunication industry. Today, the country is better for it as every Nigerian now has access to telephony.

Even the initial fear that the cost of services would jump to the high heavens has also been dispelled as competition has since stepped – in to stabilise the cost of services to the delight of most Nigerians, even while striving to improve on their services.

With a Foreign Direct Investment (FDI) of over $12 billion in the telecom sector, it is projected that no fewer than five million Nigerians are engaged in the sector as direct employees, third-party employees or as contractors and suppliers.

A deregulated downstream sector would eventually stabilise the prices of fuel products by the time local entrepreneurs engage in the production of the commodities from their refineries.

At present, the country is simply servicing the employment of thousands of jobs in countries where she imports fuel from.  A huge employment gap exists in the country’s petrochemicals and allied sector, where the economy has lost so much revenue due to the policy of regulated oil sector.

The art of funding fuel imports is a drain on the country’s external reserves.  It has become apparent that depleting of the country’s foreign reserves is a huge premium the ordinary Nigerian would have to pay for the massive importation of fuel.

What is however unpredictable is how long this bazaar would last before the country begins to experience shocks in her ability to import other commodities that must necessarily be imported, power equipment, for instance.

This explains why the policy to deregulate must be seen in the light of ensuring that the current capital flight as demonstrated in depletion of the foreign reserve should be checked in other to free funds for the development of the economy.

Although the country has toyed with the idea of diversifying the economy, yet, it is becoming clearer by the day that the deregulation of the oil sector is one major way to truly diversify the economy.  For one thing, the development would enhance revenue generation by the government to enable it invest in other sectors of the economy.

Speaking recently on what her priority would be, Mrs. Ngozi Okonjo-Iweala, finance minister  and coordinating minister for the economy, noted that the agricultural sector would be developed as a deliberate measure to diversify the economy. She explained that the idea of job and wealth creations would remain a mirage if the agricultural sector was not developed to attract young Nigerians to it.

No doubt, this cannot be possible in an economy where 30 per cent of the national budget is committed to funding subsidy. At present, the United Nations had stated that Nigeria has over 100million people unemployed.

This figure is staggering and should alarm every well-meaning Nigerian, hence, the need to take necessary measures to attack this monster.  On a deep reflection, the Federal government’s choice of deregulating the oil industry to energise the economy should be commended.

The antagonists of the policy have not really given the alternative to funding public infrastructure. Most Nigerians eulogise the feat recorded by the Petroleum Trust Fund (PTF) under the regime of late General Sani Abacha. That came at a cost.

At that time monies realised from the upward review of fuel price was channeled to the PTF to be used for the development of public infrastructure and other essential services as in health care and education.  Today, the need to fund public infrastructure has not ceased.

In fact, it has continued to rise.  Only recently, Corps Marshall of the Federal Road Safety Commission (FRSC) announced to a bewildered citizenry that Nigerian roads rank among the second worst in the world.

Before then, the minister of works, Mr. Mike Onolememem had also cried out that the Federal government has no money to build roads. Yet, over 75 per cent of federal roads need either rehabilitation or total rebuilding. Where then, would the money come from?

Apparently, the way to go is to free all the resources tied down in fuel import regulated regime. It must be stressed that the idea of fuel subsidy cannot continue to hold when Nigerians are daily crying for the provision of adequate power supply, functional education and health services as well as security of lives and property.

No doubt something must give way for the attainment of these Millennium Development Goals (MDGs) imperatives.  For instance, the on-going strike by the Academic Staff Union of Universities (ASUU) would equally require funds for their demands to be met.

It would amount to simplified logic to argue that government would be able to meet the financial demands of ASUU with or without the removal of the subsidy.  From where?

Perhaps, the greatest disservice in the application of Nigeria’s fuel subsidy is the fact that it benefits the rich.  There is no doubt that those who do the importation are the elite. Besides, it is also these same classes that smuggle the products to neigbhouring countries where they make millions of hard currency at the expense of Nigerians.

May be, the only trace of subsidy for the poor is through public transportation. Unfortunately, not many of the transporters get to buy petrol at the regulated price of N65 per litre.   I hold a strong view that Nigerians should necessarily rethink their opposition to the removal of subsidy.

Therefore, the various stakeholders including Labour and civil society groups should develop a mechanism to monitor the government, especially the federal government, to ensure that the accruals from the removal of the subsidy are duly utilized.

It is time really for those with genuine interest in investing in the oil sector to play in the level playing field that deregulation will engender. Soon, very soon indeed the tremendous benefits of this policy will become very glaring.

Gaya wrote in from  Garki, Abuja