PIA implementation committee to raise issues for amendments

Chairman, House Committee on Petroleum Upstream, Hon. Musa Adar has said the Presidential Implementation Committee of the Petroleum Industry Act (PIA), would observe the inherent in the law, and present them for an amendment to the national assembly.

Umar said a new process for amendment to upscale the law for performance will not be as tedious as the process that birthed the Petroleum Industry Act.

He spoke on Channels television programme alongside Peter Esele, former President of Trade Union Congress (TUC) and PENGASSEN and the National President of Petroleum Product Retail Outlet Owners, Billy Gills-Harry, where they discussed the possible impact of the Act on oil operation.

Umar said already, the Upstream committee has found out that the designation for the respective commissions in the new upstream Commission, which would have two entities was not properly captured.

This development he maintained underscored the need for an immediate amendment.

Umar said “A law is ongoing and there is room for statutory amendment, at any time, if a lacuna is observed. Somebody from the parliament or the executive can bring a law for amendment owing to a particular lacuna to strengthen and smoothen its operation.

“In my discussion with an expert in the industry, who happens to be a member of the committee, I told him in the structure provided by the Petroleum Upstream, you are going to have two Executive Directors, in the Regulatory Commission, and the Authority, I now asked him, what is going to be the nomenclature for the single head? He inquired.

He argued that in the “Petroleum Upstream Commission, is going to be a regulatory commission if you have a structure like that, it means you are going to have a division or a Managing Director (MD) which I do not think so, all the commissions have executive secretaries, you would need to look at that, it means they are going to have vice-chairman or executive chairman.

“Also there is a need to come up with a structure that is applicable even if it is for the nomenclature or title which is important. This is because you do not have to have an executive director, under an executive chairman, look at the NCC now, there is a vice-chairman and Deputy Commissioners.

“So, I will look into it so that we come up with this and we are going to come up with executive directors, it means we are going to have an MD.

“We do not have any commission in Nigeria, that the headship is titled the MD or DG so these are some of the issues.

“Like I said, for the implementing committee, they are going to look first at the possible challenges with the law, and they will be able to advise the President to come up with an amendment, to correct the anomalies and that can be done within a short time.

Umar assured that the fear of job loss was unfounded because the expansion of the industry would mean more jobs and tasks for agencies, thus there would be a reassignment of roles to agencies like the Petroleum Equalization Funds and some regulatory agencies.

For the former President of the TUC/PENGASSEN, Peter Esele the PIA is a half-filled cup for the industry, which its implementation would demonstrate with time.

He said the graduation of the OGIC to PIB and finally becoming the Petroleum Industry Act (PIA) demonstrates the nation’s determination to grow the sector.

He argued that the capacity of the regulatory agencies must be built in a manner that they would be able to independently regulate the respective areas in the oil sector.

He cited the example of the Department of Petroleum Resources which depends on Helicopter of the international oil companies (IOC) to ferry her officers for a supervisory assignment and wondered how that could yield any result for the nation that so assigned them.

He raised the issue of the tenure of the GMD of the NNPC which he said remained at the discretionary powers of the minister and the President to sack.

He maintained that such development would hinder the GMD from following through with certain policies as he may fear being removed in the process.

He urged the Federal government and the parliament to look into this development as it would give focus and direction to the Corporation.

On his part, the National President of Petroleum Product Retail Outlet Owners, Billy Gills-Harry, said the PIA is a call to action especially on the part of the private sector.

He said the law called for the deep interface between the government especially the implementation team and the operators in the sector for better understanding and direction.

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