Oil and gas stakeholders predict doom for petroleum sector as Buhari retains portfolio

- President Buhari's retention of the petroleum ministry has elicited reactions

- Stakeholders in the oil sector fear that the next four years might offer little grounds for optimism

- They stated that there was the need to restore confidence in the oil and gas sector

President Muhammadu Buhari on Wednesday, August 21 disclosed he would retain his position as minister of petroleum resources, working alongside former Bayelsa state governor Timipre Sylva who will serve as the minister of state.

A report by The Guardian indicates that Buhari's retention of the petroleum portfolio elicited mixed reactions from .

The director, Centre for Petroleum, Energy Economics and Law (CPEEL), University of Ibadan, Prof. Adeola Adenikinju, warned that power brokers could frustrate Sylva’s operations.

“This reduces the ability of the latter to embark on independent policies and actions. If stakeholders start doubting the power of the minister of state, it will undermine his authority and effectiveness in midwifing reforms.

“We can also have a situation where a powerful Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) might bypass the minister of state, bringing about a diminution of his authority to superintend the ministry and the NNPC,” Adenikinju said.

According to him, there were indications that a show of power between former minister of state Ibe Kachikwu and former NNPC GMDr Maikanti Baru affected the sector negatively.

Nevertheless, Adenikinju noted that retaining the seat could allow for institutional memory and make the sector’s issues command attention at the highest level.

Former President of the Nigerian Association of Petroleum Explorationists (NAPE), Abiodun Adesanya, said: “A lot of things urgently need to be done. We have not had a licensing round since 2007. There must also be clear-cut policies.

“Some of the policies have to be revisited especially the gas commercialisation programme. The bureaucratic process it takes to see the president has to change for the oil and gas and other priority sectors.

“The president must also appoint a director for DPR. Petroleum products also need to be available to avoid the challenges we had in the past.”

On his part, the chairman of Petroleum Technology Association of Nigeria (PETAN), Bank Anthony Okoroafor, said there was the need to restore confidence in the oil and gas sector.

“With the National Assembly cooperating with the presidency, we hope that the Petroleum Industry Bill (PIB) will be signed to improve the fortunes of the industry,” he said.

A former president, Nigerian Association for Energy Economics (NAEE), Prof. Wunmi Iledare, noted that the inability of the president to address the petroleum industry reform, which started about 20 years ago, remains a critical concern. He said the president and the minister of state must let professionals head the upstream, midstream and downstream sectors of the industry.

“The ministry is not the regulator. He must concentrate on policy development and analysis. The minister must not get involved in the day to day running of the NNPC. It must be allowed to function as a purely commercial business with less agency role,” he said.

On his part, the director-general of the Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, said: “The delay in the signing of the PIB into law is not helping matters. We suggest that the government intensifies efforts at attracting private investments in refineries, coupled with ensuring that the ongoing Turn Around Maintenance (TAM) and repair of the four refineries intended to put them back on stream to operate at their installed capacity is expeditiously completed.”

Meanwhile, former Rivers state governor, Chibuike Rotimi Amaechi has been retained as the minister of transportation.

Amaechi's retention as the transport minister, as announced by President Muhammadu Buhari, attracted cheers from hundreds of Nigerians who witnessed the ministerial inauguration of the council chamber of the Presidential Villa, Abuja.

Amaechi has been hailed for his reforms in the Nigerian transport sector that was nearly comatose before he came on board in 2015.

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