By DENNIS UDOMA, Uyo
Nigeria is among the list of top rich nations of the world in terms of natural resource and human capital. Her population is estimated at approximately 156 million by 2006 census and with this figure plus decades of independence, the country seems not bothered about finding solutions to its mirage of challenges.
At the moment, the economy is facing serious crisis arising from a number of factors. One of such factors is energy which plays a vital role in the management of the country.
Over the years, Nigeria’s economy consistently depended solely on oil/gas where about 95 per cent of the total revenue is generated from without any diversification.
However, the current global crash in prices in the energy sector has dealt a big blow on the domestic economic performance. For instance, many states and local governments are now crying wolf unable to foot their bills especially workers’ salaries and other contingencies, thereby forcing them to seek immediate bailout intervention from the Federal Government in order to fulfill primary responsibilities and move on with capital projects.
Besides, it would be interesting to note that, as the population keeps on increasing by the day, which might also double by 40 per cent in a few years to come, Nigeria needs vast amounts of extra energy to support the astronomical growth in population and, the challenge will be how to do everything economically, socially and environmentally possible to meet up with the energy demand.
Like other democracies, Nigeria currently faces four energy challenges:
1. Nigeria has entered the most energy-intensive phase of economic development with the attendant growing demand for energy by her population.
2. Compromising attitude of dealers in the downstream sector increases concern on both government and individuals hence, need for adequate legislation and control.
3. Battling with criminality of oil theft in the country especially in the South West, South-South and South East geo-political zones of the country where majority of the pipelines conveying crude oil are being vandalized.
4. The market forces, where the demand unarguably super-cedes the supply. These issues form some of the problems facing energy availability in the country presently.
Continuous hike in the price of petroleum products – petrol, diesel and kerosene – in Akwa Ibom state has brought harsh economic hardship on the people in the last eight months.
Now, a liter of petrol sells at between N150 and N200 while black market dealers sell at N250 or there about especially since the resumption of strike by petroleum tanker drivers who are protesting the bad roads between Akwa Ibom and Cross River States.
The price has continued to soar in the past five days pending when the strike would be called off.
A transporter, Mr. Umo Friday hinged the problem on intrigues by dealers in Akwa Ibom who usually keep on hiking petrol prices from time to time.
“We blame our petrol dealers who keep on increasing their prices, which in turn affects our transport operations,” he said.
Mr. Friday maintained that problems also emanate from the dealers of the various unions within the sector and, called for concerted effort by the government to check the activities of petroleum dealers in the country.
Assistant Director and Operations Controller in charge of Akwa Ibom and Cross River States of the Department of Petroleum Resources (DPR), Mr. Asuquo Antai, told this correspondent in Uyo, the Akwa Ibom State capital that, his surveillance team from the DPR has sealed almost 35 filling stations in Abak, Ikot Abasi and Ikot Ekpene Local Government Areas of the state.
He said the team would continue with the surveillance to checkmate dealers who cause artificial scarcity that leads to hikes in the products’ prices in the state.
According to him, “Since we started monitoring, petroleum marketers have shut down sales and gone underground, and usually resurfaced in the night to sell at exorbitant prices to helpless buyers.”
Antai maintained that DPR would not relent in its avowed commitment to make petroleum products available in the state by ensuring that marketers comply with the NNPC’s directive of dispensing fuel at the approved selling price of N87 per liter.
Will the country continue in this vicious cycle of scarcity and exorbitant prices without any lasting solution?
Experience over the years has shown that the country has not been able to find the correct answer to the nagging.
Previous ministers of petroleum have embarked on turn-around maintenance of refineries without any positive result. If the refineries had been made to work, the problem of supply would have been solved, at least to a reasonable extent. The question remains, how can we as a country solve this perennial problem of scarcity of petroleum products permanently? History has, unfortunately shown that the more effort that is being made, the more complex the problem becomes.
The fact is that no matter the strength of drugs administered for an ailment, as long as the medication is not the right one, such illness can never be cured. This applies to the Nigerian problem. It is clear that apart from the issue of crippling corruption in the sector, the country has been using the wrong drugs to treat the petroleum scarcity problem.”
It may well be that the time has come to deal with this challenge now that Mr. President is supervising the petroleum ministry directly as its minister.
