PIA: Buhari Wants Finance, Petroleum Ministries Removed From Boards

President Muhammadu Buhari has proposed an amendment to the Petroleum Industry Act (PIA), 2021 with a view to making provisions for administrative structure for Nigerian Midstream and Downstream Petroleum Regulatory Authority and Board of the Upstream Regulatory Commission.

The details of the proposed amendments were contained in the 3-page cover letter titled: ‘Forwarding Administrative Structure Amendments to the Petroleum Industry Act (PIA) 2021’, read on the floor of the House by the Speaker, Hon. Femi Gbajabiamila.

On the appointment of non-Executive Board members, President Buhari observed that the Petroleum Industry Act 2021 provided for the appointment of two non-Executive members for the board of the two regulatory institutions.

“I am of the view that this membership limitation has not addressed the principle of balanced geopolitical representation of the Country, therefore, pray for the intervention of the 9th Assembly to correct this oversight in the interest of our national unity.

“Needless to add that this amendment will provide a sense of participation and inclusion to almost every section of the country in the decision making of strategic institutions such as the oil industry.

“If this amendment is approved, it will now increase the number of the non-Executive members from two to six that is one person from each of the six geopolitical zones of the country,” the letter read in part.

On the removal of the Ministries of Petroleum and Finance from the Board of the two Institutions, the President stated that: “The proposed amendment will increase the membership of the board from nine (9) to thirteen (13) members that is representing 44% expansion of the board size.

“This composition would strengthen the institutions and guarantee national spread and also achieve the expected policy contributions.

“The two Ministers already have constitutional responsibilities of either supervision or inter-governmental relations. They can continue to perform such roles without being on the board.

“It is also important to note that administratively the representatives of the ministries in the board will be Directors- being the same rank with the Directors in the institution. This may bring some complications in some decision making especially on issues of staff-related matters,” he noted.

On the appointment of Executive Directors, President Buhari observed that the appointment of civil servants as Executive Directors must be subjected to Senate confirmation.

“The Act has made provision for 7 Departmental Heads in the Authority to be known as Executive Directors.

Their appointment will also be subject to Senate confirmation. This category of Officers are civil servants and not political appointees.

“The Senate is invited to note the need to exempt serving public officers from the established confirmation process for political appointments.

“This will ensure effective management of the regulatory Institutions through the uniform implementation of public service rules for employees of the Authority. In the future, these positions will obviously be filled by the workers in the Authority,” he noted.

The nominees for confirmation into the Nigerian Petroleum Regulatory Board are Idaere Gogo Ogan (Chairman); Engr. Sarki Auwalu (Chief Executive); Abiodun A. Adeniji (Executive Director, Finance and Accounts); and Ogbugo Ukoha (Executive Director, Distributions Systems, Storage and Retail Infrastructure).

In a separate letter dated September 16, 2021, President Buhari while relying on the provision of Section 11(3) of the Petroleum Industry Act 2021, requested the Senate to confirm the appointment of four nominees as Chairman, Chief Executive and Executive Commissioners to the Board of the Upstream Regulatory Commission.

The nominees for confirmation are Isa Ibrahim Modibo (Chairman); Engr. Gbenga Komolafe (Chief Executive); Hassan Gambo (Executive Commissioner, Finance and Accounts); and Ms Rose Ndong (Executive Commissioner, Exploration and Acreage Management).

According to the President, both requests for the confirmation of the board’s membership were made “in order to fast track the process for the establishment of the Commission.”