Former Senior Special Assistant to ex-President Olusegun Obasanjo, Prof. Adeola Adenikinju, has urged the government to develop the energy sector, to ensure economic development.
Adenikinju, the director, Centre for Petroleum, Energy Economics and Law (CPEEL), University of Ibadan (UI), who spoke while delivering an inaugural lecture titled: ”Energy and Nigeria’s Economic Development: A Troubled but Indispensable Marriage” in UI, said the policy of subsidy and excessive government intervention in the energy sector was the bane of the energy sector.
He said: “Appropriate pricing policy in the fuel and electricity subsector will deliver an efficient sector that will attract private investment, signal real cost of production to consumers and save the government billions of dollars that can be more efficiently utilised in other sectors.
“The energy sector is highly capital intensive, hence, we must create an environment that encourages private sector operators to embark on risk taking ventures with the hope of earning corresponding risk-adjusted returns. Investors dislike uncertainty. Hence, the Petroleum Industry and Governance Bill and associated bills with the National Assembly must be passed. Also, the Electric Power Sector Reform must be revisited.”
The professor of energy economics added that strong institutions and regulatory agencies that are independent and autonomous should provide oversight on the sector.
He said the petroleum sector must not just be seen as a revenue earner to the government, but also as a development enabler, which must be integrated into the rest of the economy.
“Oil producing communities must be taken care of. The Niger Delta Masterplan, which I was privileged to be part of developing, must be revised, to transform the Niger Delta communities.
“We must encourage greater indigenous participation in the energy sector. Despite the progress of the recent past, there is still a long way to go. “
There must be more innovative ideas, backed up by policies and laws to enable more access for genuine Nigerian investors across the entire value chain of the industry.
“The environmental situation in Niger Delta must be urgently addressed. We must stop gas flaring and impose significant penalties for human and non-human interference with oil and gas pipelines.In addition, we must pay proper attention to energy data and statistics” he said.