By Innocent Anaba
LAGOS — Nigerian Bar Association, NBA, yesterday, said it was totally opposed to the planned removal of petroleum subsidy by the Federal Government.

National Executive Council, NEC, of the NBA, at its meeting, in Eket, Akwa Ibom State, took the position after weighing the arguments in favour and against the withdrawal of the subsidy.

The association called on the Federal Government to create an enabling environment for licensed companies to refine fuel in the country to make the product available to Nigerians

NBA said: “Government must evolve or design a seven-year staggered phased removal of petroleum subsidy. It must implement the deregulation of the downstream sector of the petroleum industry as conceptualised by the Obasanjo administration or a better mode.

“This includes a complete reactivation or turn-around of the four existing refineries in the country. When they start production at their installed capacities, their yields will be deducted from the total volume of imported petroleum products.

“If government cannot turn around four refineries, is it with the management of N1.3 trillion subsidy bonus annually that it will be trusted to faithfully apply for the achievement of the MDGs?

“Government must licence private refineries, thereby avoiding any need to resort to importation of petroleum products. Government must divest from the downstream sector of the oil industry, consequently, it will need to divest its interest in the production and retail end of the oil industry and limit itself to providing policy and ensuring the maintenance of standards in the industry.”

NBA stressed the need for government to adopt exceptional strategy to minimise the effect of corruption, adding that with monster at large in the country, no government policy would succeed, as there was need for re-orientation of the attitude of the people to corruption.

The association added that”government must understand that for that policy to work, it must create strong institutions and structures within the sector to ensure the success and sustainability of the policy. Though critics of the policy acknowledge that the policy will in effect open up the sector to new investment, to competition, which will cause efficient resource allocation and eventually drive down the price of fuel in Nigeria, government must realise actualising the policy depends deeply on patience and constant re-evaluation of the process.”