OPS, MOMAN and DAPPMAN kick against one regulator for oil and gas industry

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