By; ALEX UANGBAOJE, Kaduna
Following the perennial fuel scarcity in the country, some lecturers of the Kaduna State University (KASU) on Wednesday, suggested practical ways of ending the crisis that has continued to cripple the Nigerian economy.
At a public lecture organised by History Department of the university, the lecturers agreed that given the abundance of crude oil in the country, Nigeria has no business importing refined fuel.
They said that government must as a matter of urgency institute mechanism and workable policies that would address the lingering fuel challenge that affects all sectors of the economy.
The university’s head of History, Dr Terhemba Wuam, noted that fuel scarcity has been a recurrent feature of Nigerian economic life for decades.
Wuam said that perennially and frequently, Nigerians suffer from the inability to drive into petrol stations and buy fuel for transportation and other energy needs in industries, offices and homes.
He said that the effect of fuel scarcity has without doubt, severely retarded economic growth in the country, adding that many hour are lost on unending queues and productivity negatively affected.
He blamed the development on government insistence to control the sector and not allowing purely economic consideration to be the determinant of the pries that the end users ought to pay.
According to him, the solution is simply to deregulate the oil sector and remove all vestige of subsidy so that economic realities would determine the final price.
“This is because, if the market reality is such that the government approved price is no longer sustainable, the government will find itself in a difficult position as is apparent.
“I am not totally against subsidy or government interventions in specific areas because support the subsidisation of education and health care; and government should build roads, railways and provides social services.
“But if there was a commodity that subsidy should not be applied to, it is oil. Because subsidising oil for a poor country like Nigeria by government that lacked resources has been economic hemorrhage.
“If we don’t take economic realistic decision with regard to the oil sector, the challenge of regular fuel scarcity and week funding of other crucial sectors of the economy will continue to persist.”
Wuam advised the federal government to approach the crises in the oil industry from purely economic realities rather than a social and political perspective.
“The government can only end fuel scarcity by ending subsidy in all its forms, deregulate the sector and allow market forces to determine price.
“I equally advise the government to introduce petroleum sales tax which will be utilise to improve infrastructure, education and health care, “he added.
Dr Seth Akutson of Economics Department, said that scarcity persist because government was more concern with the demand aspect of the product instead of the supply chain.
According to him, government ought to be looking at how to improve supply of the product and not closing down fuel station, because oil marketers will always maximise profit if opportunity presents itself.
“The Federal Government can deregulate the oil sector, but should also employ competence hands to manage the ministry of petroleum.
“The government must also holistically fight corruption in the oil sector, improve infrastructural deficit open up supply chain, allow private sector participation and reduced incentive on fuel importation.
“But above all, there should be joint action by the masses and collective resolve to change the situation for the better, “he said.
Similarly, Prof. Ibrahim Umar, also of Economics Department said that the economic and social nature of the commodity as instrument of political control and an avenue of making profit made it prone to manipulation.
He said that to end scarcity, government must build more refineries.
