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Strategic groups in the Nigerian economy have kicked against the oil and gas industry having just only one regulatory commission as presently contained in Petroleum Industry Governance Bill ( PIGB), saying that one regulator for both the down and upstream is detrimental to the industry and economy.
They urged President Muhammadu Buhari not ascent the bill until he ensures that two different regulatory agencies are created with each of them taking care of upstream and downstream of the petroleum industry respectfully.
They also frown against the composition of the board members of the proposed commission which is alleged to be skewed towards civil servant. This situation they said may deny the industry the necessary operational vibrancy if the president finally ascent the bill.
The groups which comprised of the Organised Private sector (OPS) Major Oil Marketers Association of Nigeria MOMAN and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) alleged that too much bureaucracy may cause the proposed commission in the PIGB to be inefficient in performing its function as the operations of both the downstream and upstream sector of the industry are not the same despite that fact petrol is the only link that binds them together.
According to Olufemi Olawore , the executive secretary of MOMAN, he said that one regulators for industry would be too big, or omnibus and may make it to lose focus.
He said: “There was a time there was one regulator in the oil and gas industry but it could not police the industry and this was what led to the creation of Petroleum Product Pricing Regulatory Agency (PPPRA)”
He said the downstream needs a regulator that would only focus on what is happening at the sector alone, adding that it might get to a stage that one regulator might not be able to get whatever revenue the government wants alone.
According to the MOMAN boss with two regulators there would be speed, efficiency and required staff to promptly attend to issues with ultimate urgency. “The downstream and upstream have nothing in common as their characters are different. So there is need for specialists in both sectors of the industry.
Reginald Odia, the chairman of Economic Policy of the Manufacturers Association of Nigeria (MAN) bemoaned the fact that the proposed commission board members would be mostly civil servants with private sector being schemed out such an important commission.
He stated that the machines used by OPS members are serviced by oil and gas products, adding that the bill has removed a critical stakeholder from the settings.
“Upstream of the petroleum industry does not have much for Nigerians. Nigerians are playing prominent roles in the downstream through generations of employment and other services rendered to the economy,” he said.
He said they want two regulatory bodies which would have their board members spread across critical sectors of the economy , saying that the OPS want a commission that would them voice and capacity to make contribution to the overall development of the downstream.
In his own contribution, Olufemi Adewale, executive secretary of DAPPMAN said the association during the public hearings on the bill but wondered while the national assembly choose to prefer one regulator.
Olusola Bello
