Balanced geopolitical representation: Buhari seeks amendment of PIA
…Board without ministers makes NNPC commercial entity — Oyebanji
…Amendment shows Buhari is flexible — Fawibe
By Gloria Akudoro, Ariemu Ogaga & Uthman Salami
President Muhammadu Buhari has sought for the amendment to the recently passed Petroleum Industry Act (PIA) from the National Assembly, noting that amendment would bring about more participation and inclusion of more Nigerians across all the geopolitical zones.
The President who asked the Senate to amend the Petroleum Industry Act (PIA) 2021, made this request in a letter read by the Senate President, Ahmad Lawan, during plenary yesterday, on the floor of the Red Chamber of the National Assembly in Abuja.
Controversies had trailed both the passage and eventual assent to the Act by the president, with different regions especially the Southern States unequivocally expressing marginalization and exploitation of the region by the North.
It will be recalled that stakeholders in the Niger Delta, especially the host communities, had been up in arms with the National Assembly for approving the three per cent equity and 30 per cent of of the annual profit of the Nigerian National Petroleum Corporation (NNPC) as Frontier Basin Funds.
Ealier before the president’s assent, the Pan-Niger Delta Forum, PANDEF, Host Communities of Nigeria Producing Oil and Gas, HOSTCOM, and other stakeholders of Niger-Delta also opposed the bill especially the three per cent profit for the host community, saying it was too small.
The group further rejected the Minister of State for Petroleum, Timipre Sylva over insistence on some of the provisions of the Act for Host Communities Development Trust Fund (HCDTF).
However, in a letter sent to the Red Chamber, dated September 16, the President explained that his proposal for amendment became necessary after carefully reviewing the administrative structure of both the Nigeria’s Midstream and Downstream Petroleum Regulatory Authority, and the Nigerian Upstream Regulatory Commission.
Contrary to agitation, the President listed only three areas of the Act he sought to be amended to include the appointment of non-executive board members, removal of the Ministries of Petroleum Resources and Finance from the boards of the two institutions, as well as the appointment of executive directors.
While the PIA provides for the appointment of two non-executive board members, President Buhari is seeking an expansion of the membership.
“I am of the view that this membership limitation has not addressed the principle of balanced geopolitical representation of the country,” he said in the letter to the lawmakers.
“I, therefore, pray for the intervention of the 9th Assembly to correct this oversight in the interest of our national unity.
“Needless to add that this amendment will provide a sense of participation and inclusion to almost every section of the country in the decision making of strategic institutions such as the oil industry.”
If approved, the President is hopeful that the amendment will increase the number of non-executive board members from two to six – ensuring that each region has representation.
Parts of the Act highlighted by the President for amendment are Section 11(2)(b), Section 34(2)(b), Section 11(2)(f), Section 11(2)(g), and Section 34(2)(g), among others.
Buhari also asked the Senate to confirm the appointment of Isa Modibbo as Chairman of the Upstream Regulatory Commission, and Gbenga Komolafe as its Chief Executive.
In his reaction, the erstwhile Chairman of the Major Oil Marketers Association of Nigeria (MOMAN) Chairman, Mr Tunji Oyebanji responded said, “Increasing the number of Non-Executive from 2 to 6 is a welcome one as it will allow every part to have a sense of belonging.”
He added that the “removal of the Ministers is a welcome one as well,” noting “that with less inclusion the better for the oil sector as it will allow NNPC to run as a commercial entity without being politicalized.”
Also reacting an energy Expert who is also the Chairman and Chief Executive Officer (CEO), International Energy Services Limited, Dr. Diran Fawibe said in a telephone chat with Nigerian NewsDirect, that the proposed amendment would address imbalances in the Petroleum Industry Act.
Dr Diran lauded Buhari’s decision, saying it has showed that the president is flexible and listen to the yearnings of Nigerians.
He said the amendment is with a view of correcting the imbalances in the composition of the Petroleum Industry Act (PIA).
He warned that what Nigerians should be concerned about the ongoing Energy Transition quest globally which is making Crude Oil less attractive.
Fawibe urged that, “Nigerians should be concern about how to bake the cake rather than sharing, that should be the concern of everybody.”
He lamented that over the years resources allocated to the region of Niger Deltan have not yielded any result.
He called for constructive advocacy in addressing issues arising from PIA.
He noted that, “What I think we should do now is to walk every part of the Country convassing for peace so that the implementation of the PIA will bring development to the oil producing communities and Nigeria at large.
“The amendment is a welcome development and it is in right direction. It demonstrates one fundamental issue that the Petroleum Industry Act (PIA) provisions are not cast in stone. And that the President is flexible to making changes as maybe necessary.
“It only requires strong advocacy on the path of proponents of certain ideas or changes that need to be made on the PIA.
“And if there is strong and constructive advocacy obviously there could be changes. This is a democracy and the opinions and viewpoints of the people must carry the day,” he stated.
