President Muhammadu Buhari has asked the Senate to amend certain provisions of the Petroleum Industry Act (PIA) 2021.
Gatekeepers News reports that President Buhari has asked the 9th Assembly to review the administrative structure of the Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority in PIA 2021.
Although the joint National Assembly committees that worked on the PIB earlier proposed a five per cent equity share for the development of the host societies, the Senate led the campaign for its reduction to three per cent while the House of Representatives approved the panel’s recommendation.
However, the conference committee set up by the presiding officers of both chambers in their recommendation, fixed the equity share at three per cent and was approved by the National Assembly.
This generated controversy as senators from the South-South geopolitical zone kick against it and requested the President to resolve the impasse by seeking an amendment to increase the equity share to five per cent.
However, the new amendments proposed by the President did not address the concerns of the South-South lawmakers, rather it centred on the need to increase the numbers of the non-executive board members of each of the regulatory agencies from two to six, to capture the six geopolitical zones.
Buhari wrote, “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, I 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 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”
President Buhari also removed the Ministers of Finance and Petroleum Resources from the board of the two agencies, stating that the two Ministers already have constitutional responsibilities of either supervision or inter-governmental relations.
The President said, “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.”
Buhari noted that the appointments of the Executive Directors who would be in charge of the seven departments in the NMDPRA should not be subjected to Senate confirmation since they are civil servants who were promoted in the course of their careers.
He said, “The Act has made provision for seven departmental heads in the Authority to be known as executive directors.
“Their appointment (according to the PIA) will also be subjected 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 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 added that the proposed amendment would represent a 44 per cent expansion of the board site as a result of the increase of the board membership – from nine to 13 members
Buhari said, “This composition would strengthen the institutions and guarantee national spread and also achieve the expected policy contributions.”
