The Centre For The Promotion of Private Enterprise, CPPE,has given recipe of how the nation’s energy sector can sustain its contributions to Nigeria’s Gross Domestic Product.
The Nigerian Bureau of Statistics report identified the following sectors as having experienced contraction in the second quarter of this year:
The highest contraction was in oil refining which was 42%, rail transportation 38%, crude oil and gas 11.8%, metal ores 25.5%, electricity vehicle assemblies 7.8%, electricity and air-conditioning 7%; motion pictures and music 6%, textiles 2.8%.
Muda Yussuf,CEO of CPPE,in a statement sent to Premium News,implored the government to address the challenges of the massive oil theft which is affecting the oil output,adding that the safety of the oil facilities is also very paramount to reverse the under performance of the oil and gas sector.
He said the implementation of the Petroleum industry Act would boost investment in the sector as well.
The electricity sector reforms need a review to improve efficiency and productivity in the sector,he said
He added:”The challenges in the electricity supply chain needs to be urgently addressed – gas to power, transmission, distribution, energy pricing, metering, and the capacity of the distribution companies. All of these are needed to improve performance and attract more investment into the sector. Need to put fiscal incentives in place to boost investment in renewable energy in line with the energy mix objective of government. Such incentives could be in the areas of tax incentives and the waivers of import duty on renewable energy equipment.There is an urgent need to decentralize the national grid for ease of management and efficiency.
“There should also be a deliberate policy to attract private investment in the electricity grid.The textile sector is a victim of the current harsh business climate, especially for the real sector. The key element is the high energy cost, forex illiquidity, currency depreciation and weak domestic patronage.
“The government should ensure that all uniforms of security agencies and other government institutions are produced from local textile fabrics. Generic issues of high energy cost also need to be addressed.The rail system needs adequate security to rebound. Government needs to accelerate the security cover for the rail lines and the and the railway transportation system across the country.
“There should be an urgent engagement with investors in the auto assembly plants to identify the peculiar challenges facing them. But surely, better patronage of vehicles assembled in Nigeria would have a positive impact on the performance of these firms”
