- Appoints Board Members of New Regulatory Agencies
ALMOST three months after the passage of the Petroleum Industry Bill (PIB) by both chambers of the National Assembly and a month and half after he signed it into an Act, President Muhammadu Buhari is seeking to make amendments to some sections of the new oil sector legislation, the Petroleum Industry Act (PIA).
President Buhari, in a letter to the National Assembly on Tuesday, said the proposed amendments are on the administrative structure of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Regulatory Commission.
The President stated the letter requesting for amendment followed a review of the administrative structure of the Commission and the Authority which proposed amendments to three sections of the PIA.
The first request for amendment is on Sections 11(2)(b) and 34(2)(b) which provides for the appointment of two non-executive members for the board of the two institutions, with the President asking that the position be increased to six to allow for representation from all the six geopolitical zones.
“I am of the view that this membership limitation does not address the principle of balanced geo-political representation of the country. I therefore pray for the intervention of the ninth assembly to correct this oversight in the interest of national unity. “Needless to add that this amendment will provide the sense of participation and inclusion for 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 non-executive members from two to six. That is, one person from each geo-political zone,” the letter reads in part.
The second request for amendment is on Sections 11(2)(f-g) and 34(2)(f-g), where the president seeks to remove the ministers of petroleum and finance from the board of the two institutions.
Under this proposed amendment, the president said, the membership of the board will increase from nine to 13; representing 44 per cent expansion of the board’s size.
“This composition will strengthen the institutions and also achieve the expected policy contributions. The two ministries already have constitutional responsibilities of either supervision or intergovernmental relations that will continue to perform such roles without being in the board.
“It is also important to note that administratively, the representatives of the ministries in the board will be directors in the same rank in the institutions. This may bring some complications on some decision making especially on issues of staff related matters.”
The third request for amendment; which is on Section 11(3), deals with the appointment of executive directors.
The Act made provision for seven departmental heads in the authority to be known as executive directors with their appointments being subject to Senate’s confirmation.
However, President Buhari said these categories of officers are civil servants and not political appointees and should therefore not be subjected to senate vetting.
“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 uniform implementation of public service rules for employees of the Authority.
“In the future, these positions will obviously be filled by workers in the Authority through career progression in conformity with the rules and regulations of the federal civil service,” the President stated in his letter.
The president informed the lawmakers that the proposed amendments to the PIA is aimed at laying sound administrative structures governed by simple operational laws that will ensure smooth take-off and consequent growth of the two institutions.
It is also in line with this administration’s commitment to carry out petroleum reforms, he said.
The president also constituted the board of the Commission and the Authority – nominees which he also forwarded to the lawmakers for confirmation.
The letters were read out by the Senate President, Ahmad Lawan, and the Speaker of the House of Representatives, Femi Gbajabiamila, at the start of plenary of both houses on Tuesday, September 21, 2021.
The appointment of the chairman and members of the board of the Authority, the president said, is in line with 34(3) of the Petroleum Industry Act 2021. The nominees include: Idaere Ogan (Chairman); Sarki Auwalu (Chief Executive); Abiodun Adeniyi (Executive Director, Finance and Accounts), and Ogbugo Ukoha (Executive Director, Distribution Systems, Storage and Retail Infrastructure).
For the Commission, President Buhari appointed Isa Ibrahim Modibbo as Chairman, Gbenga Komolafe as Chief Executive, Hassan Gambo as Executive Commissioner, Finance and Accounts, and Rose Ndong as Executive Commissioner, Exploration and Acreage Management.
The appointments, the letter said, are in accordance with the provisions of Section 11(3) of the Petroleum Industry Act 2021.
