‘Nigeria’s Oil & Gas Sector Needs More Reforms’

How do you think we can improve transparency in the oil sector and reduce instances of corruption?

Everyone in Nigeria understands the current hardship being faced in the country and the need to improve transparency in all sectors so we can generate more revenue. Despite repeated attempts to diversify the economy, oil remains the biggest contributor to Nigeria’s economic growth. And once there is an absence of transparency in that sector, it affects government revenue and public spending. This is why in my opinion, we must pay attention to reforms being initiated by regulatory agencies in the oil sector.

Some of these reforms have been tailored towards transparency in hydrocarbon accounting, enhancing oil and gas production, and curbing leakages. There has been tremendous progress as per reforms, but more work needs to be done. Plugging the loopholes in Nigeria’s oil production value chain will not be a walk in the park; it will involve a grimy and slow slog through policy and execution pathways. Solving complex problems is never easy, no matter how pleasant the outcomes are. My take, however, is that there has to be accountability, not just in the oil sector but in every aspect of government. With improved transparency in the oil and gas sector, the country gets more revenue, which will translate to the provision of basic services to teeming Nigerians. So we have to continue to challenge the regulators to adopt measures that would tackle challenges facing the oil and gas sector and raise the country’s oil production capacity.

What is your view on the inability of the Port Harcourt refinery to meet deadlines for the resumption of oil production?

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The repeated delays in the resumption of production at the Port Harcourt refinery are certainly concerning. It highlights systemic issues that need to be addressed within the management and operational framework of the refinery. Consistent failure to meet deadlines already has far-reaching implications for fuel supply and the economy at large. It is my view that the turnaround maintenance of refineries has been a disappointing drain pipe on the resources of our country. We must put a stop to the fleece. The Port Harcourt refinery and others must resume to optimise the benefit of our status as an oil-producing country. The non-functional refineries in Nigeria contribute to the country’s reliance on imported refined petroleum products, which drives up costs due to transportation, tariffs, and other associated expenses. This has implications for the cost of transportation for workers and ordinary citizens. It has also been a contributing factor to the rise in food inflation. This dependence on imports of petrol makes the cost of fuel higher for consumers, as they bear the burden of these additional costs passed on by suppliers.

So far, how will you assess the reforms by the President Tinubu administration?

Civil society organisations and groups have the responsibility to continue to hold the feet of public institutions on fire and applaud them when they work for public interest and good. More importantly, there is also the need to provide support systems for citizens’ awareness. advocacy and conscientisation

What is your opinion on the award of oil fields in the sector?

Citizens need to scrutinise and criticise officials of the government from the point of knowledge. As at the time the current leadership of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under its current leadership assumed office, the 2020 marginal field bid round had been concluded, save that out of the 57 fields put on offer, no signature bonus payment had been made in respect of 13 of the fields (including two that were under litigation and 4 in respect of which no bids were received). To conclude the process and generate the expected revenue for the federal government, former President Muhammadu Buhari approved that the 13 fields in respect of which no signature bonus had been paid and those out of the 57 in respect of which partial payments had been made be offered to companies that had been pre-qualified in the Bid Round who demonstrate proof of funds. It was based on this Presidential approval that the residual assets were awarded at the signature bonus predetermined by the defunct DPR and approved by President Buhari.