Wale Tinubu: Politicians want fuel subsidy to continue at all cost

Wale Tinubu, managing director of Oando Plc, says politicians
want the subsidy on crude oil products to continue at all cost.

Speaking on Tuesday at the ongoing Oil and Gas Conference in
Abuja, Tinubu called for deregulation of the sector adding that the
federal government needs to cease subsidy.

According to the Oando boss, $5 billion that could have been
used to finance much-needed infrastructure was spent on fuel
subsidy in 2018.

According to him, other critical sectors of the economy, like
education and health among others, were in need of funding, adding
that such amount expended on subsidy should have been directed to
other critical sectors or towards infrastructure development.

“The government has chosen to effectively subsidise the price as
a social palliative. Not that I support it, but we spent $5 billion
last year on subsidy, which was even more than what we spent on
education and housing combined.

“At a population growth rate of 3%, the question is what is the
best – to invest in infrastructure or consumption? There is a big
debate that has to be made around this and as stakeholders, we
absolutely need to champion that debate with the federal
government,” he said.

“The politicians want this to continue at all cost, but there is
long-term damage we are doing to our country and industry.

“We need to ensure that these subsidies are altered and the
downstream sector needs to be commercialised, the refineries need
to function and the pipelines need to function

“There is no logic in is transporting our products by road which
is extremely expensive.”

Tinubu said stakeholders in the petroleum industry should rise
up to support the deregulation of the oil and gas sector to
engender growth.

Commending the national assembly for passing the Petroleum
Industry Bill (PIB), he urged the federal government to reconsider
its passage.

He also hailed the recent appointment of Mele Kyari as the new
group managing director of the Nigerian National Petroleum
Corporation, describing him as an incredible and astute
technocrat.

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NBC N2.5bn Fraud: Kawu, Others ask Court to stop Lai’s
Appearance
The Chairman of Pinnacle Communications Limited, Lucky Omoluwa, has
asked a Federal High Court, Abuja, to stop the former Minister of
Information and Culture, Lai Mohammed, from testifying in the
ongoing trial of an alleged misapplication of N2.5 billion Federal
Government Digital Switch-Over (DSO) programme.

Mohammed had been scheduled to appear as witness by the
Independent Corrupt Practices and Other Related Offences Commission
(ICPC), who is prosecuting the Director General of the National
Broadcasting Commission (NBC), Ishaq Modibbo Kawu, Omoluwa and Dipo
Onifade over an alleged abuse of office and money laundering.

He will be expected to tell the court his role leading to the
approval of N2.5 billion DSO seed grant to a private company,
Pinnacle Communications Limited, owned by Omoluwa with Onifade as
the Chief Operating Officer.

Counsel to Omoluwa and Onifade, Alex Iziyon (SAN), had
approached Justice Folashade Ogunbanjo-Giwa, with a motion seeking
the court to stop ICPC from bringing Mohammed as a witness.
His prayers, which were supported by Kawu’s counsel, Adetayo
Adeyomo, also sought to stop the court from admitting a written
statement of the former Minister filed by ICPC as evidence.

Justice Ogunbanjo-Giwa adjourned the matter to Thursday, 4th
July, 2019 for continuation of trial as well as ruling on a pending
bail application for the release of the passports of Omoluwa and
Onifade.
ICPC had filed an amended 11-count charge against Kawu, Omoluwa and
Onifade, saying that the NBC Director General misled the former
Minister into approving government funds to a private company to
carry out the DSO project.

Mrs. Rasheedat A. Okoduwa, mni
Spokesperson for the Commission