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.
Oil & Energy
Monarchs Task FG On Host Communities’ Welfare ………As PINL Targets 2000 Women For Empowerment
“Every community would say those who are going to break the pipelines are from your community. How much more ability do we have as traditional rulers? How much power do we think we have?
“Pass our message to the government. Tell them it is time to not only put it into law and give authority to the traditional rulers but it’s time to implement it because if you don’t implement it nothing will happen”.
Also speaking, the Coordinator, Supreme Council of Ogoni Traditional Rulers, King Samuel Nnee, said people of the host communities deserve better dividends from the resources on their soil.
He decried the notion that traditional rulers are usually aware of the activities of suspected vandals in communities, urging the government and security agencies to level up in ensuring peace in the host communities.
In his words, “It has not been easy with traditional rulers because in our respective communities when you have bad boys they say we are responsible. When government want to confront traditional rulers or the evil deeds of our people, they say traditional rulers know all the people that are bad without thinking that the children- most of them, who are well educated; deserve the good things of life which government has refused to provide for them. So I want to say that the government should help our communities”.
On the responsibility to protect the pipelines and other critical assets, the monarch said Niger Delta kings need improved empowerment from the government at all levels to better perform that responsibility.
“I want to call on the agencies of government to care for the kings because we mean well for them. We’ll join you in this battle but if we are hungry we might not be able to do it more effectively.
” I want to urge the companies and government that the kings of the Niger Delta need a push to work better and then government will make progress, ” he added.
Nnee who commended the PINL for the recognition of traditional institution in their operations further called on the monarchs in the Niger Delta step up their primary function of protecting lives and all critical assets in their domain.
Speaking on behalf of the youths, the spokesperson, Coalition of Niger Delta Ethnic Youth Leaders, Comrade Legborsi Yamaabana, said lauded PINL’s mode of operations particularly in the monthly engagement of communities and relevant stakeholders.
Yamaabana attributed the company’s successes to its people oriented strategies, urging the government to give the company more responsibility.
“You are aware that production has surged, it didn’t happen as a mere coincidence, it happened as a result of concerted effort.
” So because this company has done well thus far, we’ll be calling on the government to give PINL more responsibilities because they have performed so that we’ll continue to enjoy the environmental protection we now have, ” Yamaabana said.
Represented by Dr Patricia Ogbonnaya, King Anugwo appealed to the Federal Government to retain the services of PINL saying “We want to appeal to the Federal Government that if they want these areas to grow, don’t replace PINL with another company.
” We are calling on the Federal Government that you (PINL) has delivered on the job and so it’s only natural and moral that you give more to them so that they can render more services”.
Mezeh, said the program was focused on small business development, financial literacy, and skills training for women and girls in the host communities.