Oil & Energy
Why PIA Should Be Reviewed Every Five Years – ICSAN
The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) has recommended that the Petroleum Industry Act (PIA) should be subject to review at least every five years.
Its Registrar, Taiwo Olusesi, made the recommendation in the Institute’s position paper on the PIA on Saturday in Lagos.
The Institute said that such periodic review would help to consolidate on the gains of the epoch-making legislation. “This is to accommodate the genuine yearnings of the stakeholders as well as other requisite exigencies that might come to light during usage of the law,” she said.
The Tide source reports that the PIA provides for the establishment of the Nigerian National Petroleum Company Limited (NNPCL) within six months after the enactment of the Act. She enjoined government to build a proper governance structure around the NNPCL.
Olusesi urged that the appointment of the directors to its board must be based purely on merit with emphasis on issues of relevance, board requirements, and diversity in the board composition.
She added that there must be strict adherence to the notions of disclosure and transparency while ethical observances must be ingrained in the template of the company’s operations. “There must be an adequate framework of risk management and control system which should incorporate well-articulated whistleblowing policy.
“Furthermore, proper checks and balances must be built into the system to ensure that no individual, unit, or department can undermine or dis-apply the control system at his or her whims and caprices.
“We request that NNPCL should always have board to oversee and guide the management to achieve the expected objectives.
“There should be an annual board appraisal with the corporate governance evaluation of NNPCL, which should be published,” she said.
She said that without putting in place all these governance mechanisms, the envisaged metamorphosis of the moribund NNPC into a more efficient and dynamic NNPCL would not be realised.
According to her, the exercise will simply be a mere change of name without a change of anything else, with all its concomitant business-as-usual tendencies.
The corporate governance professional added that as a public interest entity, the NNPCL must have a qualified and experienced company secretary to oversee its secretariat.
She said this would enable the secretariat also play its role as the compliance officer responsible for the entrenchment of good corporate governance in the company.
“The qualification and experience must not be less than that of a company secretary of a public interest entity and the recruitment process must be competitive.
“The status of this management staff, duties, functional and administrative roles, responsibilities, reporting lines and mode of determination must be clearly stated in writing by the Board,” she said.
Olusesi also called for the proper and adequate monitoring of activities in the downstream sector to discourage all manner of sharp practices including hoarding of products to create artificial scarcity for price increment.
“The Federal Government should be proactive in devising ways and measures to counter the unscrupulous elements who may attempt to sabotage the interplay of demand and supply in a deregulated market,” she said.
She urged government, through the Federal Ministry of Petroleum Resources, parastatals and regulators to embark on massive stakeholders’ enlightenment campaign to dispel the confusion by illuminating the provisions of the Act and revealing their implications.
“Much of the controversies trailing the PIA 2021 emanate from many of its grey areas and provisions which are capable of many interpretations.
“This lack of preciseness and clarity of many provisions in the Act is breeding mistrust and apprehensions among many stakeholders.
“For example, the provisions on the Thirty per cent Frontiers Exploration Fund require elucidation.
“The Institute, in consonance with its tradition of guiding on issues of Corporate Governance and Public Administration, hereby undertakes to convene a stakeholders’ webinar for the sake of mass enlightenment on this new PIA 2021,” she said.
As part of the restructuring, the company said it had promoted high-performing employees, released retiring staff, and disengaged others whose performance fell below expected standards.
It added that it has also begun implementing a comprehensive employee development and customer management plan to strengthen its service delivery framework.
“In line with its corporate transformation strategy, Abuja Electricity Distribution Company has announced a restructuring exercise aimed at delivering improved services to its customers as well as enhanced operational efficiency and excellence.
“The restructuring is in line with our strategic direction to become a more responsive and efficient organisation, capable of delivering world-class service to our customers.
“As part of the transformation, the Company has promoted high-performing staff, released retiring employees and those performing below par, and has put in motion the implementation of a robust employee development and customer management plan aimed at driving AEDC’s customer-centric focus,” the company said.
AEDC noted that the reforms are part of its broader commitment to provide reliable, safe, and sustainable electricity to customers across its franchise areas, including the Federal Capital Territory and the states of Niger, Kogi, and Nasarawa.
The firm further pledged to continue investing in infrastructure upgrades, digital technologies, and operational innovations to improve service reliability and customer satisfaction.
“With a strong commitment to delighting its customers, AEDC continues to contribute to the growth and development of Nigeria’s energy sector through investments in infrastructure, innovative technologies, and sustainable practices.
“AEDC consistently seeks to improve the quality of life for its customers, promote efficient energy usage, and actively engage with its communities,” the statement added.
Nwoko who is also the Senator representing Delta North Senatorial District, said that forensic reviews show over S22b, S81b and S200b remained unaccounted for across different audit periods.
“I remain committed, alongside my colleagues, to ensuring accountability, recovery, and reform within the oil and gas sector.
Nwoko stated that the Committee had earlier presented its interim report before the senate saying “Our investigation has so far uncovered massive revenue losses amounting to over $300 billion in unaccounted crude oil proceeds over the years.
“This represents one of the most troubling cases of economic sabotage our nation has ever faced.
“We have made far-reaching recommendations to end this long-standing menace.
“There is need for strict enforcement of international crude oil measurement standards at all production and export points.
He urged the federal government to mandate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deploy modern, tamper-proof measuring technology or return this function to the Department of Weights and Measures under the Ministry of Industry, Trade, and Investment.
The senator called for the deployment of advanced surveillance systems, including drones, to assist security agencies in combating oil theft.
He also called for the creation of a Special Court for Crude Oil Theft to ensure swift prosecution of offenders and their collaborators, saying it would also go a long way in tackling the challenge.
“We must also ensure the full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to empower local communities and reduce sabotage.
“Ceding abandoned oil wells to the NUPRC for allocation to modular refineries to support local production and job creation is also very vital in fighting the menace of oil theft and sabotage,” Nwoko further said.