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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

DSP Barau and “Abandoned Projects” : An Appraisal

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By Abba Anwar

Only those who know and understand the sluggish nature of budget implementation under different administrations, can understand whether projects are deliberately abandoned by their initiators and facilitators. Or whether the onus is on the pattern of implementation and implementors.

If Kaduna Eastern Bypass, initiated 2002, Abuja-Lokoja highway started in 2006, Kano-Maiduguri of 2007, Sokoto – Tambuwal- Jega-Kontagora, flagged – off in 2009, Abuja-Minna of 2010, among other abandoned federal projects, are not marked as noise making hubs, why then is Kano-Gwarzo-Dayi, that was flagged – off in June, 2021, can deliberately be tagged as point of condemnation by noise makers?

Kano-Gwarzo-Dayi federal road, as facilitated by the Deputy President of the Senate, His Excellency Barau I Jibrin, CFR, since 2021, though abandoned at a point, up to January, 2026, the work has resumed since February, 2026, this year.

Senator Jibrin worked hard and made sure that, the sum of Thirty Seven Billion Naira (N37,000,000,000) only was appropriated in 2026 Appropriation Bill, which has now become Act. After that he also pushed, very well for the additional Six Billion and Three Hundred Million Naira (N6, 300,000,000) only.

Unlike DSP’s facilitated federal road project of Kano-Gwarzo-Dayi, which was flagged – off in 2021, as contractors are back to site, since February, this year, there are many abandoned federal road projects, scattered around the country, whose resumption of work, with so many of the projects, is still elusive.

Such as Makurdi-Naka-Adoka-Ankpa federal road flagged – of in 2012, Calabar-Itu-Ikot Ekpene, of 2010, Benin-Sapele-Warri road, which was flagged – off in 2009, Enugu – Onitsha road, of 2013, Kano-Katsina dualization project, that was started in 2013, as contractor left in 2022, among many other abandoned federal roads.

Abuja-Kaduna-Zaria-Kano federal road is another case of study, in this context. The project has been in limbo for many years, with touch-and-go strategy.

So to me, castigating or rather blaming DSP for this singular Kano-Gwarzo-Dayi road is either premature or not necessary at all. In his own case, the work has resumed. And look at what he pushed to be reflected in 2026 national budget. Which has already become, 2026 Appropriation Act.

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Another constituency project for DSP Jibrin, is E-learning Centres across 5 local governments from his Kano North Senatorial District, in collaboration with National Information Technology Development Agency (NITDA), was facilitated by the Senator in 2015.

The Centres are across 5 local governments, Tofa, Gwarzo, Kabo, Bichi and Dambatta.

Some people erroneously blame the Senator, advancing that, the E-learning Centres were abandoned by him, since 2015, which, according to them, shows his “negligence” over his constituency. As a matter of fact, the truth of the matter is this, all the 5 E-learning Centres were converted to become Study Centres for National Open University of Nigeria (NOUN). Amongst other locations from the remaining local governments that constitute Kano North Senatorial District.

Another great project that some are blaming His Excellency DSP is Barau Initiative for Agricultural Revolution in the North West (BIARN). Many things were said about it by opponents. But the truth of the matter is this, that the project is yet to take-off fully due to the issue of cash flow from the end of the partner agency. Which is Bank of Agriculture (BOA).

Coincidentally I came across a press statement issued by the
Special Adviser to the Deputy President of the Senate on Media and Publicity, Ismail Mudashir, narrating that, the Chairman of the Initiative, Prof. Bashir Fagge Muhammad, disclosed that, “Following the signing of a Memorandum of Understanding (MoU) with the BOA management, applicants were invited to participate in the initiative. However, implementation was stalled due to challenges relating to cash flow.”

As the programme was unveiled March, 2025, it aims to revolutionise agriculture and encourage young Nigerian graduates to venture into farming.

Part of the statement reads, “Specifically, the programme was designed to empower 558 young farmers with loans ranging from N1 million to N5 million for rice and maize cultivation across the seven North West states in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda on food security and youth empowerment.”

Adding that, “Applicants are therefore urged to remain patient, as the Board of the Initiative, under the chairmanship of Professor Bashir Fagge Muhammad, is working closely with the BOA management to resolve the issue.”

So we can now understand that the programme is not, and can never be, abandoned, as some started speculating while peddling rumors around.

It is not the intention of this piece to start cataloging DSP’s long standing achievements as the Senator representing Kano North, in many areas of human endeavor.

From his Scholarship scheme where hundreds of students were sponsored for their undergraduate studies, across Nigerian universities and dozens, who were sponsored for Postgraduate studies abroad, as some completed their studies and started coming back. As thousands students from his constituency are given scholarship for their upkeep. Not to talk of his intervention in all other areas of education.

I’m not cataloging his intervention in the security sector. As he is the single individual from across North West whose intervention in the sector supersedes that of many. A Senator like no other.

His effort in sports development is unmatched. Apart from aiding football clubs and players, his completion of stadium in each of the 13 local governments under his constituency, is something to write home about.

All his interventions in such areas will come our way shortly.

Anwar writes from Kano
Wednesday, 29th April, 2026

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Opinion

The Ink Dried Up: An Open Letter to Matthew Hassan Kukah-Prince Daniel Aboki

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Dear Bishop Matthew Hassan Kukah

I write you with the utmost sense of respect.

Permit me to begin by congratulating you. Not in the usual way, but in a manner that reflects a keen observation of recent developments in our country. Since the emergence of Bola Ahmed Tinubu as President, and coincidentally since your assumption of office as Pro-Chancellor and Chairman of the Governing Council of Federal University of Applied Sciences Kachia, there appears to have been a remarkable shift in the narrative of insecurity across Nigeria.

From Zamfara State to Sokoto State, Katsina State, Benue State, Plateau State, Kwara State, and indeed across several troubled parts of our nation, one might be tempted to conclude that the k!llings have suddenly come to an end. The silence is striking. The headlines have softened. The urgency has waned.

It is this very contrast that compels this letter.

You will recall, Bishop, your powerful and courageous interventions during the administration of Muhammadu Buhari. Your voice rang loud through a series of open letters that captured national attention and stirred both conscience and controversy.

On Christmas Day, December 25, 2018, you wrote with piercing clarity about a nation drifting, warning of a “nation at w@r with itself.”

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Again, on December 25, 2019, your message, “A Nation in Search of Vindication,” questioned the moral and political direction of leadership, calling attention to bloodshed and division.

On December 25, 2020, in “A Nation in Search of Peace,” you spoke even more bluntly, addressing the worsening insecurity and the growing despair among Nigerians.

And on December 25, 2022, your letter once again raised concerns about governance, justice, and the value of human life in Nigeria.

These interventions were not just letters. They were moral signposts. They reminded leadership of its duty and the nation of its conscience.

It is against this backdrop that your current silence, or perhaps restraint, becomes more noticeable.

Has the situation improved so dramatically that the urgency of those words is no longer required?

Have the forests suddenly emptied?
Have the highways become safe?
Have the cries of victims ceased?

Or is it that the burden of national admonition must shift depending on who occupies the seat of power?

Lord Bishop, sir, your voice has always carried weight not because it was loud, but because it was consistent. Not because it was critical, but because it was principled.

Nigeria still needs that voice.

Not selectively. Not occasionally. But steadfastly.

If indeed peace has returned to the troubled lands of Zamfara, Sokoto, Katsina, Benue, Plateau, Kwara, and beyond, then you deserve commendation for witnessing such a transformation. But if, as many still believe, the reality on the ground has not changed as dramatically as the silence suggests, then your voice is needed now as much as it was then. Unless there is something we are not seeing that you would want us to see, could it be a case of “Tinubu I love, Buhari I hate”? Or should we begin to wonder whether conviction has given way to convenience?

Bishop, sir, would you recommend that we keep silent when we benefit and speak up only when we do not?

Over time, we have seen that history is kinder to those who remain constant in truth than to those who are convenient in silence.

I write not in condemnation, but in expectation.

Prince Daniel a Concerned Citizen and Head of cool Wazobia And Arewa Radio on Kano

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Opinion

Tarauni Breathes As Ja’o’ji Advances

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By Abba Anwar

Confidence, focus and straightforwardness are some of the major reasons why 2027 political contest in Tarauni is increasingly becoming more interesting and more dicey. Race for the House of Representatives seat especially.

When the former Senior Special Assistant to the President, on Citizenship and Leadership, Hon Nasir Bala Ja’oji, declared his intention to contest for the House of Representatives seat, against the current member, many keen political observers believe that, there are two major contenders now.

Ja’oji, according to many observers, is fast becoming one of the most fearless politicians within Kano metropolis. In the public eye, he was the first appointee to resign from his position, at the federal government level. The gut was seen as an asset, that cannot be purchase by every Tom, Dick and Harry.

Political pundits accept that, with all his unmatched connection, at the top of the ladder, Ja’oji, believes that, searching for political soul mates, on top of his “save our souls” empowerment and interventions are necessary tools for political victory. So he is changing tactics now, and for better.

The thousands of supporters he was able to gather, yesterday Friday, for the declaration of his intention to contest, surprised many as being unprecedented and overwhelming. Though anticipated.

He started from Gadar Lado, on Zaria road, took to the street with procession, to the All Progressives Congress (APC) Tarauni local government Secretariat, back to Zaria road to his base Ja’oji quarters. As dozens horse riders, thousands of supporters trekking and bike riders were chanting party slogan.

At the Secretariat he told the party leaders that his ambition “… is not borne out of mere ambition, but from deep sense of responsibility, commitment and consistent engagement with the people and the ideals of our great party.”

Ja’o’ji is someone with outright and unscathing love for APC’s strength and victory for all elections. He stresses this notion, when he said, “Over the past few years, I have remained steadfast in my loyalty and contributions to the growth, unity and electoral successes of our party at various levels.”

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For the simple reason that, this rare gem, has so many advantages over his challengers, in the race, he typifies that, his experience serving as Senior Special Assistant to the President on Citizenship and Leadership, has further shaped his understanding of governance, nation building and inclusive leadership.

Adding that, “In that capacity, I contributed initiatives aimed at promoting civic responsibility, youth engagement, and leadership development across the country.”

During the declaration event youth and women constituted the larger part of the participants, who made the event more colorful and intimidating. Many of those who attended the event, were of the opinion that, it is now their turn to support Ja’o’ji realize his political dream victoriously.

Ja’oji is indeed second to none, as Tarauni electorate believe that, his long standing initiatives in empowering his people, are indelible in the face of Tarauni political reality. Hundreds of women and youth benefited from his grant schemes, where some hundreds beneficiaries collected One Million Naira (N1m) each to aid their economic engagement in the society. For the overall development of the state, as a whole.

Many hundreds benefited from his scholarship scheme at periodic intervals. Where he sponsored their higher education across tertiary institutions in the state. Apart from yearly assistance rendered to secondary school students for writing their Joint Admission and Matriculation Board (JAMB) examinations. And their second school leaving examinations, NECON and SSCE. Among many other programmes.

His intervention cuts across all segments of people in Tarauni and beyond. Sometimes not minding their political affiliation. That is why people are of the opinion that, Ja’oji could be marketable and sellable easily. As his pedigree informs this reality, for the past few years. Even before he started nurturing a political ambition. Which shows that, Ja’oji has been an ardent supporter for human progress and development. A sole action that endears him to the people. Particularly those at the grassroot. Genuine electorate at all levels.

With all his shortcomings, as a human being, as no human beings, apart from Prophets and Messengers of Allah, are infallible, meaning infallibility of human beings is assured and reassured in this life, Ja’oji has age over other would be contestants. As some political pundits observed.

His long presence in the life of his people, supercedes other contestants, especially those that are new into the system. As speculation suggests that, there are some people who are drafted and some are about to be drafted into the battleground. But electorate promised that their weight is already behind Ja’oji.

As Ja’oji advances with full force with his declaration of interest and as there are reports that, within the circle of those would be contestants’ structures, some misunderstandings started emanating from within, Tarauni is about to breath well with Ja’o’ji as the rallying point.

Anwar writes from Kano
Saturday, 25th April, 2026

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