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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

Beyond the Godfather’s Shadow: Why Governor Abba Kabir Yusuf Chose Kano Over a Provincial Presidential Quest

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​By Kabiru Sani Dogo Maiwanki

​The recent pronouncements by Senator Rabiu Musa Kwankwaso regarding Governor Abba Kabir Yusuf’s strategic political recalibration have finally stripped away the façade, exposing the profound ideological fissures within the NNPP hierarchy. In a caustic address delivered Saturday evening, the Senator characterized the Governor’s newfound autonomy as a “betrayal” of a far more egregious nature than that of his predecessor, Abdullahi Ganduje. However, in this vitriolic attempt to cast himself as the victim of political infidelity, Kwankwaso inadvertently betrayed a disconcerting truth: he viewed the incumbent administration not as a sovereign executive entity, but as a subordinate instrument of his personal political estate.

​Senator Kwankwaso remarked that, as a presidential hopeful, his fundamental expectation was that the administration he purportedly “installed” would function as a geopolitical centrifuge—a financial and logistical catalyst designed to project the Kwankwasiyya hegemony into neighboring Northwestern territories. He expressed profound chagrin that, over two years into this mandate, the machinery of the Kano State government has not been weaponized to “conquer” even Jigawa State for his political brand. This revelation is remarkably candid; it implies that the Senator’s patronage of the current administration was never rooted in the socio-economic advancement of the Kano populace, but was instead a cynical stratagem to treat the state’s commonwealth as a private war chest for a singular, ego-driven presidential odyssey.

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​By resisting this role, Governor Abba Kabir Yusuf has committed what Kwankwaso perceives as an unpardonable “sin,” but what objective observers must recognize as a courageous act of institutional integrity. The Governor’s refusal to allow the Kano State treasury to be cannibalized for regional political expansion is a resounding victory for fiscal prudence and administrative transparency. It represents a principled rejection of the archaic practice where public commonwealth is weaponized to bolster the narrow political interests of a singular godfather at the expense of the citizenry.

​The depth of the Senator’s desperation is now laid bare for all to see. In a striking reversal from his usual posture of absolute authority, Kwankwaso has been reduced to making public appeals for reconciliation. His recent plea—openly asking anyone with access to the Governor to “beg him to come back”—reveals a leader who has finally grasped the magnitude of his loss. It is the sound of a man who realizes that the “innocent aide” he once underrated has not only secured his independence but has taken the soul of the movement with him.

​It is therefore essential for Kwankwaso and other political leaders who pride themselves on their political stature to realize that there is a limit to how long they can continue to deceive and exploit their followers. Respect must be reciprocal; whether between a leader and the led, there is a definitive limit to the amount of insult, manipulation, and contempt any person can endure.

Whenever you push a supporter to the brink and their patience finally runs out, the consequences of their anger will certainly be unpleasant for those in power.
​For the well-meaning people of Kano, this is a moment to offer unalloyed commendation. Governor Abba deserves praise for his steadfastness in protecting the state’s allocations and for prioritizing the welfare of the masses over the expansionist agenda of a political empire. Abba Kabir Yusuf has chosen to be the custodian of the people’s trust rather than a puppet for personal ambition, and in doing so, he has redefined the essence of leadership in Kano.

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Opinion

From Zamfara roots to national vision: Aliyu Muhammad Adamu, seasoned media leader, returns home to serve his people.”

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Aliyu Muhammad Adamu was born on 29th December 1982 in Tsafe Local Government Area of Zamfara State, into the respected Adamu Joji family.

He hails from a lineage that includes notable family members such as Alhaji Sanda Adamu Tsafe (Sarkin Yakin Tsafe), Alhaji Aliyu Adamu (Danmadami), Alhaji Sani Adamu, Hajiya Khadija Adamu (Gwoggo Dala), and Hajiya Amina, among others.

His father, Muhammad Adamu (popularly known as Nata’ala), later relocated to Kano State in pursuit of business expansion. As a result, Aliyu and his siblings were raised in Kano, where he began his early education at Da’awa Primary School, Kano.

Driven by a strong connection to his roots, Aliyu returned to Zamfara State for his secondary education, attending Unity Secondary School, Gummi. He subsequently gained admission into Bayero University, Kano (BUK), where he obtained both his Diploma and Bachelor’s Degree, graduating in 2010.

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After completing his National Youth Service Corps (NYSC), Aliyu faced the realities of life with resilience and determination, navigating through challenges that shaped his character and leadership capacity. In 2014, he returned to Zamfara State and began his professional career in the media industry with Gamji Television and Radio.

Through dedication, hard work, and professional excellence, he served the organization for nearly ten years, rising through the ranks to become the General Manager of the station, an achievement that underscored his leadership, administrative competence, and commitment to public communication.

In 2023, Aliyu voluntarily resigned from the media organization and relocated to Kano State in pursuit of broader opportunities and personal development. Today, driven by a renewed sense of purpose and a lifelong commitment to his people, Aliyu Muhammad Adamu is preparing to return to his hometown to seek the support and mandate of his people. His aspiration is to represent our parents, brothers, and sisters at the federal level, with a clear vision of contributing meaningfully to the development, unity, and overall progress of Zamfara State.

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Opinion

Opinion:The Anatomy Of A Hoax- Setting The Record Straight On Governor Abba Yusuf

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​By Ahmed Badamasi Tsaure

​The recent wave of political “scoops” regarding the purported defection of Governor Abba Kabir Yusuf of Kano State to the All Progressives Congress (APC) has moved beyond mere speculation into a coordinated campaign of character assassination. Most notably, reports by Daily Nigerian claiming the Governor’s move was “postponed” are masterpieces of fiction, designed to paint a sitting Governor as indecisive and subordinate. As a witness to the political realities in Kano, I find it necessary to dismantle these fallacies with the facts that the purveyors of this rumor have conveniently ignored. In Nigerian politics, defection is a statutory process requiring a formal resignation from one’s current party. To date, Governor Abba Kabir Yusuf has not submitted any resignation from the New Nigeria Peoples Party (NNPP). To claim that a “finalized arrangement” for a Monday registration existed is a procedural hallucination; one cannot join a new house without first stepping out of the old one.
​Furthermore, the narrative suggests the Governor’s plans were shelved because he failed to seek the “blessings” of local APC bigwigs. This is a laughable distortion of executive power. History is replete with Governors who defected based on executive conviction without the interference of local APC “big wigs.” We have seen this with the Governor of Delta vs. Senator Omo-Agege, the Governor of Bayelsa vs. David Lyon and Minister Heineken Lokpobiri, the Governor of Rivers vs. Nyesom Wike, and the Governor of Plateau vs. the current National Chairman of the APC. More recently, the defections of Governors like Dave Umahi (Ebonyi), Ben Ayade (Cross River), and Bello Matawalle (Zamfara) proved that when a Governor moves, he does so as the new leader of the party in his state. It is also historically hypocritical to label such a move as “betrayal.” When Rabiu Musa Kwankwaso defected from the PDP to the APC in 2013, he did not seek permission from any person or leadership—he led a rebellion based on his own conviction. If it was “principled politics” for the godfather then, it cannot be “betrayal” for the Governor now.

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​What, then, remains for a Governor who already holds the overwhelming mandate of his people? It is a known fact that Governor Abba Yusuf moves with the ironclad support of almost 95% of the Kano State House of Assembly, 50% of the National Assembly members from the state, all 44 Local Government chairmen, and the entire grassroots party structure. The desperate attempt by the NNPP National Working Committee to dissolve the Kano executive committees is a futile, “too-late” maneuver that only confirms their loss of control. When a Governor commands such total loyalty, he does not ask for permission; he leads. The defection of Governor Abba Kabir Yusuf is inevitable if he so wishes, as he carries the entire political soul of Kano with him.
​The theory that the APC postponed this move because Senator Kwankwaso is not coming along simply does not hold water. Kwankwaso’s refusal to join the APC is a settled matter; it is alleged the President offered him a ministerial position or the Chairmanship of the soon-to-be resuscitated Petroleum Trust Fund (PTF), both of which he rejected after his demand to join the Presidential ticket was denied. Using this stalemate as a pretext for the Governor’s “indecision” is a transparent lie aimed at making the Governor look like a political appendage. It is disheartening to see Daily Nigerian abandon objective journalism to frame the Governor as a “betrayer.” If Governor Abba Yusuf chooses to move, he does so as a leader of a massive political movement. The media must stop concocting stories to mislead the public. Governor Abba Kabir Yusuf remains focused on his mandate. These rumors are merely the desperate gasps of those who wish to see Kano in perpetual turmoil.

​Ahmed Badamasi Tsaure writes from Shanono Local Government, Kano State. He can be reached at ahmedtsaure28@gmail.com.

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