The oil industry and ethnic considerations, By Emeka Okonta

Mr Kperogi…displayed his scanty data of oil business greatest practices. Whereas the mannequin he marketed unsuccessfully in his article could possibly be considered as prioritising ethnic issues for appointment on the oil business, the regulation of the area needs to be and has been insulated from his mannequin by President Tinubu…

“I haven’t independently confirmed the accuracy of this declare” is among the many clauses utilized by Mr Farooq Kperogi, which sufficiently discredited his opinion in his newest article.

Labouring arduous to construct a temple on a muddy basis of nothing, the US-based journalism trainer, within the article titled, “Tinubu’s Buharisation of the NNPC,” took gossip and rumour to a brand new stage.

The thematic preoccupation of his write up was undisguised; to color President Bola Ahmed Tinubu as an ethnic champion bent on making certain his kinsmen obtained all juicy appointments within the oil and fuel business.

To attain this, he resorted to quotes by a sure “don’t let anybody comprehend it got here from me fallacy”; from a good friend the Professor was not even proud to call.

In a single swoop, the opinion author used one brush to color everybody of sure ethnic group on the administration stage of the oil business black.

Kperogi, amongst different objections additionally based mostly on the gossip along with his good friend, opposed the appointment of a Southerner because the Head of the oil business regulator, the Nigerian Upstream Petroleum Regulatory Fee (NUPRC). To Kperogi, Tinubu ought to have, instantly after assuming workplace, sacked the pinnacle of the regulatory company appointed by Buhari, his predecessor, for no cause aside from the a part of the nation the place the person hails from.

in his unusual permutations, President Tinubu ought to retain all Northern technocrats appointed by Buhari, however sack the pinnacle of regulatory company as a result of the person is of Yoruba respectable like Tinubu, to make sure ethnic steadiness.

Referencing his “good friend’s” “criticism” Kperogi mentioned: “His concern is that Tinubu, from the Southwest, is already the minister of petroleum. Senator Heineken Lokpobiri, the Minister of State for Petroleum and Chairman of the NNPC, is from the South-South. Chief Pius Akinyelure from the Southwest is NNPC’s Non-Govt Board Chairman. The pinnacle of the NNPC Upstream Funding Administration Providers (NUIMS), Mr. Bala Wunti, my acquaintance identified, has been changed by one Seyi Omotowa. Gbenga Komolafe is the chief government officer of the Nigerian Upstream Petroleum Regulatory Fee (NUPRC), making him the highest-ranking upstream regulator. If a Yoruba man had been to be the GMD, one other Yoruba man is the Chairman, and yet one more Yoruba man is the regulator, that’s excessive lopsidedness,” and different components of Nigeria could be justified to really feel uncomfortable, my acquaintance mentioned.”

Farooq’s Flip-by-Flip or Village-by-Village Mannequin of Oil Trade Regulation

Mr Kperogi, with the ideas above, displayed his scanty data of oil business greatest practices. Whereas the mannequin he marketed unsuccessfully in his article could possibly be considered as prioritising ethnic issues for appointment on the oil business, the regulation of the area needs to be and has been insulated from his mannequin by President Tinubu, with the appointment of Engineer Gbenga Komolafe because the chief government of the NUPRC.

Verifiable statistics present that the regulatory stratum of the business has, over time, turned a blind eye to ethnocentrism, a call that has made the management of the area to be dominated by males from the North, with no noise or recognized criticism from the South.

The pre-Petroleum Trade Act (PIA) management of oil and fuel companies within the nation confirmed that the Petroleum Merchandise Pricing Regulatory Company (PPPRA) was headed by Mallam Abdulkadir Saidu; the Petroleum Equalisation Fund ( PEF) was headed by Alhaji Boboi Ahmed; the Division of Petroleum Sources by Mallam Sarki Auwalu, whereas Dr Bello Aliyu Gusau was the helmsman on the Petroleum Expertise Growth Fund (PTDF).

On this age and century, Mr Kperogi is now advocating ethnicity as a consideration for anybody who ought to head an company that may regulate an business with lively participation from Royal Dutch Shell, American oil multinationals like ExxonMobil and Chevron, France-headquartered TotalEnergies, Italian Agip, amongst UK inventory exchange-listed oil giants like Seplat and others.

Whereas Kperogi admitted that giving individuals appointment based mostly on their ethnic identities is of no profit to their ethnic teams, he needs to be reminded that the no ethnicity consideration template in place has been yielding outcomes.

Over Two Years In The Saddle

With the appointment of the Fee Chief Govt, which has nothing to do with the situation of the village the place he was born, the NUPRC has recorded loads achievements over the past two years of its existence.

Kudos needs to be given to the previous president Muhammadu Buhari for his directive to the Fee to take over the supervision of all crude oil export terminals in Nigeria, whereas additionally mandating the NMDPRA to arms off actions regarding the regulatory work at crude oil export terminals within the nation.

The primary key achievement recorded by the fee, which could possibly be fact-checked on the premise of the optimistic suggestions that had been acquired, was its success in restoring investor confidence into the business, contemplating the significance of confidence in attracting investments.

The NUPRC has additionally been in a position to develop 18 key laws, 5 of which have been absolutely gazetted, whereas the others are being reviewed by the Ministry of Justice, with optimism that these remaining shall be gazetted inside the shortest potential time, in order that implementation of these laws can start in earnest.

Additionally, the NUPRC had been ready to make sure the conversion of 40 Oil Prospecting Licences (OPLs) and Petroleum Mining Licenses (PMLs) to Petroleum Prospecting Licences (PPLs) and Petroleum Mining Leases. Moreover, the fee had been in a position to incorporate 74 Host Neighborhood Growth Trusts (HCDT), which is a key a part of the host neighborhood provisions within the PIA, and this has engendered a way of possession within the host communities.

Nonetheless, in contrast to the  pre-PIA regime, there may be now readability within the oil and fuel business and the difficulty of discretion has been abolished within the business. As a rustic, we now function with readability and our selections are absolutely guided by the regulation.

Asides these feats talked about above, the Fee has equally been in a position to automate its processes in a way that ensures operational effectivity, which they felt was key in successfully regulating the upstream sector.

The Regulatory Fee has additionally taken over the supervision of all crude oil export terminals in Nigeria, in accordance with Chapter 1, Half 3 of the PIA, which supplies for the features of the Fee, whereas Half 4, Chapter 1 of the PIA supplies clearly statutory features of the Authority.

Oil Blocks Bid Spherical Drill and Features for Trade

The NUPRC has additionally begun the restoration of idle oil blocks in Nigeria because it introduced a recent oil licensing spherical for 2025. The 2025 licensing spherical will deal with underexplored belongings, fallow fields, and pure fuel growth as a part of Nigeria’s dedication to the UN Sustainable Growth Targets. The fee emphasised that it goals to make the licensing rounds an annual occasion to deal with challenges comparable to declining manufacturing and rising world competitors.

Key info given by the fee in regards to the 2025 licensing rounds embody:

2025 licensing spherical will deal with under-explored belongings, fallow fields, and pure fuel growth as a part of Nigeria’s dedication to the UN Sustainable Growth Targets;
To handle declining manufacturing ranges and elevated world competitors demand strategic motion;
Not discretionary by the fee, nevertheless it’s according to the statutory provisions of the Petroleum Trade Act. The regulation stipulates that the fee ought to conduct licensing rounds;
The blocks for 2025 bid bround will he harvested from idle belongings restoration programme generally known as ‘drill or drop,’ which the fee has begun based mostly on the availability of the Petroleum Trade Act.

Winners Emerged For 2022/2023, and 2024 Bid Spherical

Already, winners have emerged for the 2022/ 2023 Deepoffshore Licensing Spherical and the 2024 Licensing Spherical. These outcomes had been introduced on the 2024 Business Bid Convention organised by the fee in Lagos.

The outcomes confirmed six profitable bidders and 4 reserve bidders within the 2022/2023 DEEP OFFSHORE LICENCING ROUND whereas 19 profitable bidders and 6 reserve bidders had been introduced for the 2024 licensing spherical.

In a large show of openess and transparency names of  oil blocks and their winners had been made public by the Fee and are nonetheless out there on its web site until at the present time 

Final Line

For Nigeria to extend the tempo of its progress within the oil business, appointment into management workplaces inside the area ought to, in actual fact, be insulated from political, ethnic or non secular issues.

Emeka Okonta is a Lagos based mostly researcher and scholar with curiosity in oil and fuel issues.