Peter Uzoho
As the federal government through the Timipre Sylva-led committee sets out to discharge its mandate of implementing the Petroleum Industry Act (PIA), oil and gas and economic policy experts have advised the committee to take steps that would lead to efficient, effective and smooth implementation of the Act.
The experts, who spoke with THISDAY in separate interviews, called for the committee to immediately embark on wide stakeholder engagements and consultations in order to find ways to harmonise the contentious provisions in the Act.
They also advised the committee to ensure that persons with high technical and managerial competences were appointed as heads of the new National Upstream Regulatory Commission and the National Midstream and Downstream Regulatory Authority (NMDRA).
President Muhammadu Buhari had signed the protracted Petroleum Industry Bill (PIB) into law on August 16, 2021, bringing into existence the PIA, which has removed the legal, regulatory and fiscal uncertainties in the operations of the Nigerian oil and industry.
The Act comes with a number of benefits for the country and investors, including increase in foreign direct investment (FDIs), increase in oil revenue, attractive fiscal terms for operators, massive host community development, and job creation.
But, according to the experts, all these would only be realised if the Act is implemented promptly and efficient and in a manner that prevents potential crisis arising from ill-feeling by some critical stakeholders.
“One of the challenges the federal government will face is that we are already in electioneering, like any other incumbent government, they would want to hold on to power in 2023.
“So, to avoid any frustration in implementing the PIA, the committee must make a state-wide consultation to find a soft landing for this government that is already in transition,” Chairman of Entek Integrated Resources Limited/Lead Promoter of EnergyhubTM, Dr. Amieyeofori Felix; told THISDAY.
Similarly, he immediate-past Director General of the Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf, also stressed the need to properly engage the Niger Delta stakeholders, including the youths on the need to demonstrate better understanding of the host community issue.
According to Yusuf, “It is about attracting investment into the oil and gas sector, and invariably into the Niger Delta. A big percentage of a very small pie would not be as beneficial as a small percentage of a very big and growing pie.
“It is better to worry more about the size of investment than the percentage. The Niger Delta stakeholders should also scale up demand for accountability from existing developmental support programmes for the region.”
The Managing Director of ND Western Limited, Mr. Eberechukwu Oji, advised the federal government to sustain the high level of engagement of all stakeholders that led to the passage of the PIA.
Oji said, “More engagements will be required during the implementation. The host communities must be engaged in a systematic and sustained manner. The state governments especially the oil producing states, the oil and gas industry players, both the indigenous and the international oil companies (IOCs), the general populace, etc.”
On his part, the Chief Executive Officer of GasInvest Limited, Dr David Ige, harped on the need to appoint persons with high technical and managerial skills and competences to head the new regulatory agencies.
According to Ige, “the skillset required is what is important. The biggest mistake we will make is to have those regulators but not competent regulators.
So, the most important consideration in this game must be the competence of the regulator and the regulatory agencies. That means that the choice of the people and their skills are very crucial.”
