Connect with us

Opinion

Petroleum Industry Act: Problems and opportunities

Published

on

 

By Henry Akinduro

In 2021 the then Nigerian President Muhammadu Buhari signed the Petroleum Industry Act (PIA) 2021, bringing to a close a 20-year effort to reform Nigeria’s oil and gas sector, with the aim of creating an environment more conducive for growth of the sector and addressing legitimate grievances of communities most impacted by extractive industries.

A lot has changed in the sector domestically and globally since the reform efforts began. The number of indigenous oil and gas firms has grown, but so has the number of oil-producing countries in the region. Militancy in oil-rich communities, while remaining, has diminished. Concerns over climate change have fueled aggressive efforts to reduce global consumption of fossil fuels—driving divestment from oil and gas by companies, institutions, and countries.

The PIA represents an effort by Africa’s leading oil-producing country to respond to this changing environment. In 2019, the oil and gas sector accounted for about 5.8 percent of Nigeria’s real GDP and was responsible for 95 percent of Nigeria’s foreign exchange earnings and 80 percent of its budget revenues. In addition, because the law is far-reaching in its remit, it is complex and not easy to summarize.

If properly and vigorously implemented, the PIA can represent the gold standard of natural resource management, with clear and separate roles for the subsectors of the industry; the existence of a commercially-oriented and profit-driven national petroleum company; the codification of transparency, good governance, and accountability in the administration of the petroleum resources of Nigeria; the economic and social development of host communities; environmental remediation; and a business environment conducive for oil and gas operations to thrive in the country. However, these results are conditional on Nigeria’s political and oil industry leaders overcoming some key challenges that are discussed following the summary of the key provisions of the act.

#

The PIA overhauls the regulation and governance of the oil and gas industry. The law provides for two regulatory agencies—the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA)—that will be responsible for the technical and commercial regulation of petroleum operations in their respective sectors, and have the power to acquire, hold, and dispose of property, as well as sue and be sued in their own name.

The law commercializes the perennially loss-making state-owned enterprise, the Nigerian National Petroleum Company (NNPC), turning it into the NNPC Ltd, a quasi-commercial entity the ownership of which shares shall be vested with the government, and the ministries of Finance and Petroleum shall hold the shares on behalf of the government. Per the PIA, the president of Nigeria will appoint the president of NNPC Ltd as well as heads and members of the regulatory agencies.

Separately, the minister of petroleum, then, will head the industry with a wide range of powers to formulate, monitor, and administer government policy under the PIA.

Importantly, the PIA provides that 30 percent of the profits of the NNPC Ltd will fund a new entity, to finance exploration in other basins in the country (Frontier Exploration Fund). Ten percent of rents on petroleum prospecting licenses and 10 percent of rents on petroleum mining leases are also assigned to Frontier exploration. The act is unclear on whether there will continue to be exploration in existing basins.

The relationship between oil and gas host communities in Nigeria has historically been very poor. The PIA aims to address this problem by creating the Host Community Development Trust Fund (HCDTF) whose purpose will be to, among others, foster sustainable prosperity, provide direct social and economic benefits from petroleum to host communities, and enhance peaceful and harmonious coexistence between licensees or lessees and host communities.

Specifically, the law stipulates that existing host community projects must be transferred to the HCDTF, and each settlor (or oil license holder) must make an annual contribution of an amount equal to 3 percent of its operating expenditure for the relevant operations from the previous year.

The management committee of the trust must include one member of the host community. In addition, the act stipulates a penalty for failure to comply with host community obligations, including revocation of license.

Henry Akinduro is the chairman of Total Grace Foundation.

Opinion

Hon Sunusi Bature: Time to Take the Podium

Published

on

 

By Ahmad Dambazau

The National Assembly is a constitutional locomotive for any purposeful democratic government, it provides checks to the government of the day and a legal basis for the system in general .This basically accounts for the high respect usually accorded and, of course, the attendant high expectation placed on it. The legislative arm of government like any other is saddled with the responsibility enshrined in the constitution and among such major functions includes representation, oversight and law making in addition to many other numerous functions.

Be that as it may, it has been a genuine cause for worry for Nigerians that, despite our series of experimentation with democracy, our legislators have performed below expectation. Their handling of national issues has especially remained without constitutional decorum and political experience required of people of their exalted status. Part 2, Section 4 of the 1999 Constitution, as amended, vests the legislative powers of the federation on the National Assembly which comprises the Senate and House of Representatives.

Dawakin Tofa ,Tofa and Rimin Gado Federal constituency is one of the few constituencies in Nigeria represented by the same legislator for 18 years(2007-2005) despite poor representation .

As the federal constituency searches for the best man to represent them for this serious legislative task. One name keeping ringing bell is Hon Sunusi Bature Dawakin Tofa ,Media and Communication Expert and Director General of Media and Publicity to Kano State Governor.Sunusi has earlier served as the Chief Press Seceretary to the Governor in the early days of the administration .

#

Mallam Sunusi is a seasoned PR guru, development communication and stakeholder engagement expert with 21 years working experience in both international development, private sector and the Media in Nigeria.

He is a winner of the Cambridge education award on investigative journalism in 2008, Bature has worked at different capacities in various national, International and Bilateral organizations such as the British Foreign and Commonwealth Development Office (FCDO), the United State Agency for Internal Development (USAID), Bill and Melinda Gates Foundation, Save the Children International, Discovery Learning Alliance and the Rockefeller Foundation.

He held several positions which include General Manager Corporate Services at Dantata Foods and Allied Products Limited (DFAP), Director Stakeholder Engagement at YieldWise Project, Country Program Manager at Girl Rising (ENGAGE) Project funded by the US Government, State Project Coordinator for MNCH Campaign Project of the BMGF, Deputy Director Operations at Discovery Learning Alliance, State Program Officer, Policy Advocacy and Media Development, Communication and Knowledge Management Specialist among other positions.

Graduated with a Bachelor’s degree (B.A. Hons.) in Mass Communication from University of Maiduguri, Sanusi holds a National Diploma in Mass communication from Kaduna Polytechnic, a Higher National Diploma (HND) and a Postgraduate Diploma in Public Health Education and Promotion.He also bagged MSc. in Social Work with specialization in Community Development from Ladoke Akintola University of Technology, (LAUTECH) Ogbomosho, Oyo State and another master’s degree in Public Relations (MPR) from the prestigious Bayero University, Kano, Nigeria. He participated in the MSc program on Project Management at Robert Kennedy College, Zurich, Switzerland.Until his appointment, Sunusi Bature served as the Vice President, Nigeria operations for a UK based firm, Kingston Organic PLC.

Hon Dawakin Tofa has opened yet another vista of debate among electorates on the value of quality representation with vigour,expertise and experience of having a wider constituency responsibility and coverage .He has vindicated his mettle among his constituents that even as an appointee of the Governor his eloquent consistent and fearless voice always seeking the improvement of lives of his constituents accountability among representatives of the people.

He is truly a representative of the people though unelected going by the amount of work he was able to do for the overall benefit of his people. In fact, it is worth elucidating that this PR guru was able to touch the lives of the people in his stewardship in the private and public sectors. So far he has proved to be one of the few politicians that attracts government presence to his community. No matter what anyone would say, the amount of dividends of democracy that this community leader was able to bring to the door step of the people is unmatched.

Sunusi Bature’s development credentials and landmarks speaks volumes. The highlights of which were stellar achievements of re-positioning the educational sector in the more definitive ,radically ,progressive and futuristic manner , not to mention the capacity building, empowerment and educational scholarship for his people ,all shone brightly for both his admirers and detractors to access.

The Director General of Media and Publicity to the Governor of Kano State, Sunusi Bature Dawakin Tofa, has been honoured with the prestigious Most Outstanding Spokesperson Award by the Nigeria Institute of Public Relations (NIPR) in collaboration with the Federal Ministry of Information. Dawakin Tofa was selected for this esteemed award in recognition of his instrumental role in promoting not only the positive image of the Kano State Governor and his giant strides also for effectively showcasing the only NNPP ruling state in Nigeria.
In the award citation, Mallam Sunusi was hailed as an unwavering proponent of non-violent communication, renowned for his extensive network and adept delivery of practices with clarity in objectives, and strategic framing of engagements with his audience.His profound impact and effectiveness in perception and reputation management are highly commendable.

In whatever one indulges in there are always people to observe and give their verdict .It is a well- known fact that there is nothing stronger than the people’s verdict.it shows a collective desire which inevitably is the voice of reason. The momentum of Hon Sunusi Bature Dawakin Tofa legislative bid is gathering amongst all strata of the constituency is enough testimony that experienced count in the race for the parliamentary seat.

Dambazau wrote in from Kano.

Continue Reading

Opinion

Nasir El-rufai: The Strategic Politician in Recent Times

Published

on

 

By Abubakar Sadiq Dauda

Malam, as he is fondly called, is a very brilliant politician with alot of success stories. He is a genius per excellence when it comes to politics. He sets his main priorities and cares less about other sub priorities that may not yield to any serious positive impact. That simple act of setting his main target and work tirelessly to ensure that he delivers on the mandate makes him an outstanding politician.

In 2013, he was the brain behind the formation of APC. He committed his entire time and energy to bring Tinubu, Buhari and Atiku into thesame fold. The goal then was to defeat the ruling party, PDP.

Initially, he refused to compromise on his main target by not seeking for any elective position, which he knows may affect the chances of achieving his main priority. As fate will swing into his favour, former President Muhammadu Buhari, who was the major contender in the opposition as it was then, requested that El-rufai must contest for Kaduna governorship position in 2015. The rest is now history.

Fast-forward to 2023, El-rufai showed his zealousness and potentials by going for the bigger ‘fish’ again. His main objective was to make sure Tinubu (who hail from the South) succeeds Buhari, and APC should continue to take charge of the affairs of Kaduna state. He chose not to vie for any office in other for him to commit his time, effort and resources to achieve his main objective. The rest as they say is now history.

Again, today being the 10th of March, 2025, a well known discourse (judging by strategic meetings held recently) was finalized, formalized and brought into the public sphere by thesame figure, Nasir El-Rufai. The theme which is well known in many quarters is to make sure that the Government of the day at both national and at state level (emphasis on Kaduna) lost the election that will graciously take place in 2027.

Malam is fully committed to attain thesame success he recorded particularly in 2015 and 2023. In other for Malam to be successful, he will remain steadfast, focused and committed in achieving his main objective (judging by his past precedence).

Unlike many politicians and political actors, Malam believes in personal sacrifices to ensure that he gets the job done. He is able to outline is main priorities and commit all he has to attain the greater success he aspire, not minding whose ox is gored.

His fearlessness, foresight, brilliance, hard-work has overtime proves beyond doubt that he is indeed a strategic politician who should not be taken in for a ride.

Sadiq is a political analyst, writes from Kano and can be reached via sadiqdauda55@gmail.com

#
Continue Reading

Opinion

Ganduje Decorates Barau, Political General

Published

on

 

 

From Abba Anwar

Thrilled by the consistent effort of the Deputy Senate President, Barau I Jibrin, CFR, in making the All Progressives Congress (APC) waxing stronger across Nigeria, the National Chairman of APC, His Excellency (Dr) Abdullahi Umar Ganduje, CON, decorates the DSP with a title of Political General.

As the hall of the event to receive members of the Coalition of Atiku Abubakar Support Groups, from 19 Northern states, into the fold of the ruling APC, roared with standing ovation, the National Chairman continued, “Distinguished Barau I. Jibrin’s capacity is beyond his constituency, Kano North or Kano State.”

Silencing all hues and cries about Barau’s role in accepting members of other parties at the local level, Ganduje reminded that, “Initially people thought Distinguished Barau I. Jibrin, representing Kano North Senatorial District, is only working in Kano for receiving members of other political parties to APC in Kano.

But you can see that, he is going beyond that. He is liberating those people especially those committed to democracy, convincing them to join APC, not only from Kano or from North, but from other parts of the country.”

He commended that,” Senator Barau is a real political General.”

To further show his inner most appreciation of the Deputy Senate President’s effort in strengthening the party from many fronts, Ganduje concurred that,”… after the Fasting period all members of this Coalition will be gathered in Abuja under the leadership of Distinguished Senator Barau Jibrin, so that we invite Mr President of the Federal Republic of Nigeria, Asiwaju Bola Ahmed Tinubu, the Vice President, Senate President and Right Honorable Speaker, House of Representatives, to formally receive all your members.

In order to register the death and the collapse of the People’s Democratic Party (PDP) in Nigeria. Not only in the Northern part of the country.”

The National Chairman of APC was at the event with all members of the National Working Committee of the party. What this indicates is, how important and relevant is Barau’s effort in molding party structures and brilliant engagement in the nation’s political experiment.

Recent cemented relationship between Ganduje and Barau signals many things for the party and individuals. Alignment and realignment, among other political strategies, are a condition that scares APC opponents, real and perceived, in Kano, North and the country as a whole.

The way I see it, is this, as Barau started with local push, in accepting local politicians, entertainers and political novices, in some circumstances, his recent engagement with Coalition of Atiku Support Groups, speaks volume in understanding how deep he has gone in the national scheme of things of the ruling APC. He is more or less, becoming a pillar. Particularly with the endorsement of the National Chairman.

What Barau is up to, is subject to many interpretations. Depending on the side of the prism one is standing. But one fundamental item in his activities is this, that, he is making the party to be more visible, more vibrant, more relevant and stronger in multi-faceted manifestations. Left to me, I can say Barau is not too much concerned about local politics.

On his part, DSP appreciated that, since Ganduje became the National Chairman of APC, “… since he came in we did not lose any election. The party is waxing stronger day in day out. He has shown that he is capable. So we are proud of you Mr Chairman Sir.”

Adding that, “We thank you for making Kano state proud we thank you for making North West proud. And we thank you for making Nigeria proud. His Excellency Dr Abdullahi Umar Ganduje, CON, proves to all that he is a detribalised national leader.”

Anwar, was Chief Press Secretary to the former Governor of Kano State, Dr Abdullahi Umar Ganduje, CON, and can be reached at fatimanbaba1@gmail.com

#

Continue Reading

Trending