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Opinion

Petroleum Industry Act: Problems and opportunities

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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.

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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

Shekarau In APC, Morale Booster For Governor Abba

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By Abba Anwar

It is no longer a news or something strange for Kano people, for one to comfortably advance a stance that, among all the former Governors of Kano, who are still alive, including Military Administrators during Military regime, Malam Ibrahim Shekarau, Sardaunan Kano and a one time Distinguished Senator of the Federal Republic of Nigeria, is the most focused, most honest, most humane, most humble and most lenient, with high sense of spiritual touch.

Just like the former Governor Rabi’u Musa Kwankwaso, whose political structure cuts across all the 44 local government areas in the state, Malam Shekarau has that political spread for sure. Shekarau’s structure, under what is called Shurah Council /Committee, is more genuine and democratic, than that of Kwankwaso.

For the simple reason that, nowhere in his political life, before, during and after his days in office, it was reported that he takes decisions without consultation. The cardinal essence of the true meaning of Shurah. Consultation before action. The concept of Shurah became more prominent in his post administration era.

Even the Shurah Council /Committee, is under the leadership of another respected and down – to-earth personality, Dr Umar Mustapha, popularly known and called Mai Mansaleta (Mentholatum). An ocean difference between Kwankwaso’s Kwankwasiyya and Shekarau’s Shurah. Under Shurah, immediately after Shekarau, there is the Chairman of the body of decision makers, Shurah. Unlike in Kwankwasiyya where you have Kwankwaso and only him, as the alpha and omega. Below him in the chain of decision making and command? Nobody! Absolute totalitarianism!

With the cross over of Shekarau to the ruling All Progressives Congress (APC), the chances and influence of Kano state, Abba Kabir Yusuf, against 2027 election, are becoming more visible, predictable and waxing stronger. Even the consolidation of the party and governance are becoming increasingly focused. Shekarau is respected by almost all Kano elders and responsible individuals.

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One good thing about Shekarau’s political empire, is, almost all those who are following his political direction, have it at the back of their mind that, they are duty bound, to be loyal, as a symbol of duty of followership. No blind loyalty, no deceit and no double-speak. He, as an overall leader of the dynasty, if I can use the term, consults, before any decision is reached.

Shekarau in APC, means governor Yusuf’s decisive political spread across all the 44 local governments. I also hope that, Shekarau’s people will not be sidelined in the party activities and governance. As it was the case during the immediate past governor Dr Abdullahi Umar Ganduje, CON.

If and only if governor Yusuf wants to display practical relationship with Shekarau, I suggest, he should incorporate Shekarau’s loyalists in governance, more than any other section or camp of the traditional APC. Why? Because, Shekarau, as it appears now, has no single individual in the party leadership. Right form the ward to local government up to state. Congresses across wards, local governments and state took place few weeks back. Before Shekarau joins the party. So he should be compensated, anyway.

It is governor Yusuf, Malam Shekarau, Baba Ganduje and His Excellency, Deputy Senate President, Distinguished Senator Barau I Jibrin, CFR, who are now on the table. A round table, if you wish. Is not for roundtable discussion. But for redesign, refocus, rejig, realignment and rehearsal of current political reality in Kano, against 2027.

Without fear of contradiction and exaggeration, Shekarau is still one of the very few politicians in the country, whom, when you look at their faces, you see faith, seriousness, straightforwardness, focus, commitment and humility. So as a matter of fact, APC under the governor, in Kano, is lucky to woo Sardaunan Kano, ahead of such stiffer elections, come 2027. Which is just some miles away.

I suggest that, Shekarau people, as he joins APC, should be involved in governance from local governments to state level. Failure to do that, may as well mean, APC looks at him (Shekarau), alone, not alongside his people. And this could mean a bad political approach. Let Shekarau and his people know that, their relevance and influence are spotted and appreciated, by the present state government. Unlike what was obtained in the past. When their hardwork, commitment and loyalty were thrown to the dogs.

As important as Shekarau is, in normalizing and consolidating the strength of APC, not only in Kano, it is expected that, his people would not be neglected after joining the party. Yes, Shekarau still enjoys grassroot supporters, real and genuine, for that matter. The ball, I believe, is in the court of both President Bola Ahmed Tinubu, GCFR, and governor Yusuf.

So governor Yusuf should facilitate the fixing of Shekarau people in some chosen federal government spaces. Consolidation of power, is rewarding, when realities on ground are not deliberately neglected.

Shekarau’s influence cuts across many states, especially, in the North. More importantly, people that are religious, in the true sense of the word religion, gentlemen and other community leaders across our traditional settings. Humility and approachable posture, are two major attitudes that endear him to many.

Without being economical with the truth, I can say, governor Yusuf finds a new political father in Shekarau. Take it or leave it.

Anwar writes from Kano
Wednesday, 8th April, 2026

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Opinion

AN OPEN LETTER TO THE PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA

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​Date: April 7, 2026

​His Excellency, Bola Ahmed Tinubu, GCFR
President of the Federal Republic of Nigeria
State House, Abuja.

​Your Excellency,

​We write to you as a collective patriotic stakeholders and concerned citizens of Kano State, motivated by a profound sense of civic duty and an unwavering commitment to the integrity of our democracy.

We are observing with keen interest the ongoing deliberations regarding the appointment of a new Deputy Governor for Kano State, and we are compelled to bring to your attention the grave implications of certain reports currently circulating within the political sphere.

​There are persistent and troubling rumors suggesting that the Presidency may be exerting significant pressure on Governor Abba Kabir Yusuf to nominate an individual for the Deputy Governorship who is currently facing multiple and serious corruption charges.

It is imperative to bring to your attention a detail of which you may not be fully aware: the candidate being promoted by the former National Chairman of the APC, Dr. Abdullahi Umar Ganduje, is a co-defendant alongside Dr. Ganduje himself in these very cases.

There are active criminal proceedings instituted by the Kano State Government in competent courts of law, backed by overwhelming documentary evidence.

​The precedent for accountability in this administration has already been set. Before the sudden resignation of the former Deputy Governor, Comrade Abdulsalam Gwarzo—which was necessitated by a petition submitted to the State House of Assembly regarding corruption charges to the tune of approximately ₦2 billion—the Assembly had formally demanded that he defend himself.

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Rather than engage the members, he chose to resign. To now recommend another individual, whom the state is actively prosecuting across multiple courts, would be, to say the least, a glaring act of double standards.

​The pressure being mounted for this specific nomination appears to be nothing more than a calculated attempt to secure a form of “backdoor immunity” for the accused.

By elevating a co-defendant to the office of Deputy Governor, the ongoing trial would be effectively paralyzed, as the individual would then be shielded by the constitutional immunity afforded to that office.

Such a move would be a direct assault on the rule of law and an affront to the judicial process. It would not only ridicule the personality of the Governor but also compromise the integrity of the legislators and the APC as a party.

​Your Excellency, we cannot ignore the striking parallel between these local developments and the commendable steps your own administration is taking at the federal level to ensure accountability.

We note the vigor with which your government is investigating high-ranking former officials—including the likes of Abubakar Malami, SAN, and His Excellency, Nasir El-Rufai.

To then turn around and compel a state governor to elevate an individual facing similar scrutiny to the second-highest office in the state would create an irreconcilable double standard.

​It is our sincere opinion that Your Excellency should allow the Governor to nominate whoever he feels comfortable working with as his Deputy Governor.

Beyond the moral and legal implications, there is a significant political risk. In a state like Kano, where the ADC is preparing a formidable opposition, mounting pressure to nominate Dr. Ganduje’s candidate will invite immense internal friction and provide the opposition with potent ammunition to challenge the administration’s credibility.

​The good people of Kano State, and indeed all Nigerians who believe in the rule of law, would be forced to rethink their perception of your administration’s stance against corruption. We urge you to allow the internal processes of Kano State to unfold without external interference that favors political expediency over judicial integrity.

The soul of our governance and the sanctity of our institutions must remain paramount.
​We trust in your wisdom.

E-signed
Habib musa Dawanan is a Kano citizen, frontline member of APC, live at 801 Yakasai Quarters, Kano City.
7th April, 2026

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Opinion

OPINION:Bauchi ,A Paradise for Immunity Seekers? How Alleged Corrupt Politicians Are Eyeing Government House

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By Haroon Mustapha

For the attention of His Excellency Asiwaju Bola Ahmed Tinubu, GCFR, President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria
If two-term presidential politics is a game of two halves, then the first term is when a President sets direction, lays foundations, and begins to redirect the country toward a brighter future. The second term is when those gains are consolidated, the larger vision is executed, and a lasting legacy is secured. The ‘BAT’ are positioned to become the halcyon period that repositions Nigeria regionally and internationally: no longer the tired story of a nation defined only by potential, but the 21st-century story of a country that converts potential into tangible national benefit.

That is precisely why Bauchi, like every other state in the federation, must not be allowed to become a paradise for immunity seekers. Past executive failure must not be recycled. Allegations of criminality must not be politically laundered. Questions over allegedly siphoned NNPC funds, allegations of procurement abuse, and claims touching on banditry or terrorism financing must not simply be brushed aside while Bauchi misses a genuine opportunity to reposition itself as a hub for tourism, agricultural investment, and strategic solid-mineral development under your second term.

Few tactics in politics are as cynical as the rush for constitutional immunity. Under Section 308 of the 1999 Constitution, as amended, governors are protected from civil and criminal proceedings while in office. For some Bauchi politicians, the timing of their ambition raises serious questions. With lingering allegations from their time in the civil service or in federal appointments, the governorship can appear less like a platform for service and more like the ultimate constitutional shield. Reports in the public domain describe individuals investigated or charged by the Economic and Financial Crimes Commission (EFCC) or the Independent Corrupt Practices and Other Related Offences Commission (ICPC) repositioning themselves as leaders seeking the people’s mandate not necessarily to serve, but, critics argue, to evade accountability. Whatever language such actors now deploy, the public record cannot simply be wished away. This playbook risks turning Bauchi into a haven for immunity seekers, weakening public trust, undermining good governance, and damaging the wider reform legacy your administration seeks to build.

The most obvious example is the current governor, Senator Bala Abdulkadir Mohammed. Before his election in 2019, Mohammed, a former Minister of the Federal Capital Territory, had faced EFCC scrutiny. The anti-graft agency publicly stated that he “was standing trial for money laundering at the time he won election as governor of Bauchi State. Only the constitutional immunity from prosecution, which his current office attracts, has put that case in abeyance.” EFCC statements issued earlier this year reiterated that position and linked the matter to his prior public roles. More recently, his administration has also come under fresh EFCC scrutiny involving aides charged with money laundering and terrorism financing, with his name reportedly appearing in court filings. Governor Mohammed has dismissed these developments as political persecution. Critics, however, argue that his 2019 governorship bid was timed, at least in part, to take advantage of constitutional immunity. Whether one accepts the EFCC’s account or the governor’s defence of a witch-hunt, the optics remain troubling: public office appears, at minimum, to have functioned as a route away from immediate accountability.

 

Now a section of Bauchi’s political elite is reportedly positioning Dr Bala Maijama’a Wunti as Governor Mohammed’s preferred successor ahead of the 2027 elections. That prospect raises a profound question: is this confidence, or the entitlement of a political class that believes public memory is short and can be manipulated? In today’s world, alleged misconduct in public office does not remain hidden. It is documented, debated, and permanently available for scrutiny. Public commentary on social media, local reporting, and Wunti’s own political signals increasingly frame him as Mohammed’s preferred successor, with consultations inside APC structures reportedly already under way. Some accounts further suggest a wider political bargain in which Governor Mohammed could defect from the PDP to the APC, secure the APC senatorial ticket for Bauchi South, and see his Commissioner of Finance, Yakubu Adamu, who is currently facing EFCC charges of money laundering and terrorism financing at the Federal High Court, emerge as Wunti’s running mate. If such a transition were realised, it would align Bauchi’s leadership succession with the ruling party, smooth Wunti’s path, and preserve Mohammed’s political relevance.
Dr Wunti is a career public servant who served in the Nigerian National Petroleum Company Limited. He joined in 1994 and rose through the ranks to hold several senior positions, including Production Programming Officer, Group General Manager of Corporate Planning and Strategy, Managing Director of the Petroleum Products Marketing Company, and, crucially, Group General Manager of the National Petroleum Investment Management Services from 2020 to 2025.

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In his final stint at NNPC, he served as Chief Health, Safety and Environment Officer before retiring in June 2025. Since then, he has increasingly been mentioned as a leading contender for the governorship of Bauchi State.
However, as in the case of Bala
Mohammed in 2019.

 

Groups such as the Concerned Citizens of Nigeria, the Community Development Committee, and the Citizens Watch Coalition petitioned the EFCC and the National Assembly for investigation, citing what they described as more than 10 incidents of fraud and abuse of office. A 2025 petition to the EFCC reportedly renewed demands for a formal probe. Wunti has not been convicted of any offence, and his defenders have dismissed the allegations as blackmail and baseless claims unsupported by probative evidence. Even so, the accumulation of petitions and media reports has kept the allegations in public view. As he is now discussed as a possible APC governorship candidate in Bauchi, critics see a familiar pattern: a senior federal technocrat under heavy public scrutiny moving toward an office that carries constitutional immunity.
Mr President, you have presented yourself as a bold reformer willing to take difficult decisions that previous administrations avoided. Your economic reforms have marked a clear departure from decades of fiscal complacency. The removal of the fuel subsidy shortly after your inauguration in 2023, though politically risky, ended a long-standing drain on public resources and will remain one of the defining decisions of your presidency.

The unification of exchange rates and the floating of the naira signalled a return to market discipline. Non-oil revenue performance, debt-service relief, GDP recovery, and rising external reserves have all been cited as evidence that your administration is pursuing a serious reform agenda. Additional efforts in civil-service reform, institutional restructuring, regional security cooperation, and infrastructure build-out have reinforced the image of a government trying to reset the Nigerian state. That is precisely why the company your administration keeps matters so much.

The people of Bauchi are tired of unrealised potential. They are tired of youth unemployment, weak primary healthcare, underdeveloped tourism assets, and a state economy that has not matched its promise. Bauchi can be a food basket for the North. It can become an engine room for value-added solid-mineral development. It can attract investment in agriculture, logistics, and tourism. These aspirations fit naturally within your stated vision of a stronger, more economically stable Nigeria built on sustainable growth, institutional integrity, and reduced corruption. But they cannot be realised if the state is captured by political actors whose primary instinct is self-preservation rather than public service.

Mr President your brand rests on reformist credibility: ending unsustainable subsidies, blocking fiscal leakages, and projecting administrative seriousness. Embracing figures with unresolved EFCC-level baggage carries obvious reputational risks. Public perception matters. Global perception matters. If Bauchi’s succession narrative hardens around Wunti amid contract-fraud petitions, and if that process is linked to a wider political accommodation involving Governor Mohammed, it will invite the charge that the ruling party is providing political cover to individuals facing grave allegations. In that scenario, isn’t Bauchi being conned once again?

 

Mr President, your legacy is not to be built on GDP numbers alone. It is also built on the company one keeps and the precedents one sets. Any association with politicians who appear, in the public mind, to treat the governorship as a get-out-of-jail card risks diluting the narrative of national renewal. It would also feed the perception that the APC is becoming a vehicle for elite protection rather than public service. In Bauchi specifically, the elevation of Wunti despite the allegations tied to his NAPIMS years, even if those allegations have not been proven in court, would send a dangerous signal: that political usefulness can override transparency concerns. Nigerians across the country would then be entitled to ask whether this is truly the new Nigeria your administration promises, or merely the old order dressed in reformist language.

Bauchi State’s political elite must decide whether shielding individuals facing serious public allegations serves the people or merely perpetuates a cycle of impunity. The impunity of the entitled. Mr President, you have staked your place in history on economic courage; you now face a parallel test of political consistency. Enduring legacy demands reform without selective blindness to corruption. Allowing Bauchi to become an immunity paradise would not only betray the people of the state; it could also stain the broader reform project your administration has diligently advanced. The 2027 contest will test whether substance prevails over political shelter, or whether the governorship remains a golden ticket for those with unfinished business before anti-corruption agencies. Nigerians deserve better than a state run as a refuge from accountability.

We remain guided by you, Mr President.
Mustapha, wrote from Bakin Kura Street, Bauchi

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