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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

President Tinubu’s Visit to Katsina: A Missed Opportunity Wrapped in Songs and Handshakes

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Jamilu Abdussalam Hajaj

 

By Jamilu Abdussalam Hajaj

President Bola Ahmed Tinubu’s visit to Katsina should have been a pivotal moment—an opportunity for the state to draw national attention to its pressing challenges, developmental milestones, and future aspirations. Unfortunately, what should have been a strategic communication moment for the state turned into a viral distraction.

From the streets of Katsina to the corners of social media, two things dominated the narrative: a campaign-style song from singer Rarara and a casual handshake between the President and Aisha Humaira. These moments, while lighthearted and culturally expressive, overshadowed the very essence of a presidential visit—governance, development, and accountability.

It raises a critical question: Was the state’s PR machinery asleep, or was the leadership not interested in framing the visit within a narrative that could catalyze national interest, policy focus, or even investment in Katsina?

In a time when states are competing for federal attention, donor support, and private capital, optics matter. Yet, in Katsina, a sitting governor was cheering a singer on and clapping joyfully to impress the President. A presidential visit is not just a ceremonial tour; it is a platform. It’s the time to walk the President through pressing realities— insecurity in rural areas, the economic potential in agriculture, the struggles with education, the underfunded health sector, the resilience of the people, and the efforts already underway to tackle these issues.

Instead, the silence around these important issues was deafening.

No strategic documentaries. No impactful speeches. No high-level stakeholder engagements positioned in the media. No community interactions that could inspire federal interventions. Not even a strong visual presentation of the state’s development agenda.

Governance is not just about doing the work; it’s about telling the story. And in that regard, Katsina missed the moment.

This visit should have been used to showcase the hard work of the administration (if there is any to show), to call for more support where needed, and to galvanize public interest and empathy. But when all that trends from a presidential visit are a song and a handshake, it’s safe to say the moment was poorly managed or, worse, completely misunderstood.

Moving forward, states must take public relations seriously—not for propaganda, but for perception, engagement, and strategic positioning. Because if you don’t control the narrative, someone else will. And often, they will focus on the trivial and mundane parts, not the transformational.

 

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Opinion

EFCC Probe on Refineries: Transparency or Political Witch-Hunt

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By Aminu Umar

The recent move by Nigeria’s anti-corruption agency, the Economic and Financial Crimes Commission (EFCC), to probe the handling of finances and contracts related to the Port Harcourt and Warri refineries has stirred a heated debate on whether the investigation represents a genuine drive for transparency or a politically motivated witch-hunt.

At the heart of the issue is the EFCC’s request for salary records and allowances of 14 key officials who served during the refinery rehabilitation period. These include high-ranking executives such as Abubakar Yar’Adua, Mele Kyari, Isiaka Abdulrazak, Umar Ajiya, Dikko Ahmed, Ibrahim Onoja, Ademoye Jelili, and Mustapha Sugungun.

Others listed are Kayode Adetokunbo, Efiok Akpan, Babatunde Bakare, Jimoh Olasunkanmi, Bello Kankaya, and Desmond Inyama. The commission appears focused on payments and administrative decisions linked to the multi-billion naira refinery resuscitation program.

However, conspicuously absent from the list of those summoned is Adedapo Segun, the current Chief Financial Officer (CFO) of the Nigerian National Petroleum Company Limited (NNPCL), who served as Executive Vice President for Downstream and was directly in charge of treasury, refinery operations, shipping, and trading. During this time, all payments related to the Port Harcourt and Warri refineries were made under his financial supervision.

This omission has raised several questions: Why is Segun not being invited or questioned if the goal is transparency? Why is the probe appearing selective?

Equally puzzling is the inclusion of Abubakar Yar’Adua, whose role is administrative rather than operational, while high-profile former Group Managing Directors (GMDs) such as Andrew Yakubu, and Emmanuel Ibe Kachikwu, who played central roles in refinery policy and contracts in previous administrations, appear to have been bypassed.

We are not saying Mele Kyari is innocent or guilty, but we must insist on a fair process,” a stakeholder familiar with the situation told this reporter. “This shouldn’t be a selective trial. The people who gave out the contracts and approved the funds must be investigated too.”

The tension is heightened by growing concerns that the probe is targeted at individuals from a specific region. Many observers fear this could deepen regional mistrust, especially if only northern executives are made scapegoats.

We are worried this is being used to paint Northerners as the only looters,” said one source. “You cannot fight corruption with bias. You need to look at all sides. This includes those who were ‘exonerated’ too quickly.”

Another burning question is why individuals such as Emmanuel Ibe Kachikwu, former Minister of State for Petroleum, and Andrew Yakubu, former GMD of NNPC, who had strategic influence on contract awards and rehabilitation policies, are not facing any scrutiny. Critics argue that anyone involved at any stage of the refinery rehabilitation—whether from policy, finance, or operational perspectives—should be equally held accountable.

Civil society groups and international anti-corruption bodies are now being urged to step in. The call is for an independent and thorough probe that includes all relevant stakeholders—without exception.

“We are calling on NGOs and international organisations to ensure that this is not a political trial. If you must clean up the refinery system, you must do it across the board,” the statement concluded.

In a country plagued by decades of failed refinery operations and opaque oil sector dealings, the public is watching this investigation closely. The EFCC is at a crossroads: its actions will either affirm its commitment to justice or expose it to accusations of being used as a tool for political vendettas.

For now, Nigerians wait—with growing skepticism.

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Opinion

Censoring the Uncensored: The irony behind Hisbah’s ban on Hamisu Breaker’s song

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By Ummi Muhammad Hassan

Following the ban by Hisbah on a new song titled “Amana Ta” by Hamisu Breaker, social media went into an uproar, capturing the attention of the public.

In the early hours of April 24, 2025, social media was filled with reactions following a press statement issued by the Deputy Commander of the Hisbah Board, Kano State chapter, Dr. Khadija Sagir, announcing the ban of Breaker’s new song. The reason cited was that the song allegedly contains obscene language.

This announcement, however, triggered a counterreaction from the public. Many became curious to know more about the song and the so-called obscene content, with some taking to their social media handles to express their opinions.

The irony of the situation is that Hisbah unintentionally gave the song more prominence, causing it to go viral. Many people who were previously unaware of the song searched for and listened to it, just to understand the controversy.

In my opinion, after listening to the song, it contains no obscene language. Rather, the issue seems to lie with some young women who mimed the song in a suggestive manner after hearing that Hisbah had labelled it as indecent—as though to dramatize or reinforce the claim. Some even appeared as if they were intoxicated.

To me, this is both devastating and concerning, as it reflects the erosion of the strong moral standards once upheld by Hausa women. Many young people are now making videos lip-synching the song in indecent ways. It made me pause and ask myself: where has our shyness gone? I believe this question deserves a deeper conversation on another day.

In Breaker’s case, thanks to the Hisbah ban, he became the most trending Kannywood artist in April, and his song went viral—and continues to trend.

A similar incident occurred earlier this year when the federal government banned Idris Abdulkareem’s song *Tell Your Papa*. That action unexpectedly brought the artist back into the spotlight, causing the song to trend widely.

Social media has made censorship increasingly difficult. Once a movie, text, or song reaches the internet, it becomes almost impossible to control—even by the creators themselves.

While social media censorship remains a challenge, this recent incident highlights the need for the government to intensify efforts against the spread of indecent content—through Hisbah and agencies like the Kano State Film Censorship Board.

Clear guidelines should be put in place, requiring artists and filmmakers to submit their content for review and approval before public release. This, among other strategies, could help reduce the spread of inappropriate material.

Additionally, Hisbah should be more mindful of how such announcements are made, as they may inadvertently promote the very content they seek to suppress.

Ummi Muhammad Hassan, Ph.D., is a lecturer in the Department of Mass Communication at Bayero University, Kano. She can be reached via email at: ummeemuhammadhassan@gmail.com.

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