The appointment of former Bayelsa State Governor Timipre Sylva as Minister of State for Petroleum Resources, replacing Emmanuel Kachikwu, could make or mar the economy.
Oil accounts for about 70 per cent of Nigeria’ revenue, but the Organization of Petroleum Exporting Countries (OPEC) member has been hit hard by a prolonged drop in crude prices that have caused the deepest crisis in Africa’s biggest economy for more than a decade.
Amid a series of changes, Buhari has himself retained responsibility for the full portfolio, despite the oil sector of the economy shrinking by -2.40 percent in Q1 2019 compared with -1.62 percent recorded in Q4 2018.
Adeola Adenikinju, gas policy analyst for the World Bank and Professor of Economics at University of Ibadan said it’s very important the new minister of petroleum strikes a good relationship with the president and enjoy the confidence of president in order to succeed. “It’s one thing to have a technocrat who knows how to move the industry forward it’s another thing to enjoy the confidence of the president.”
“He was former governor, so he knows what it means to exercise executive authority. rather than start from scratch, he just needs to have an assessment on what was on ground and prioritize which is important, most especially the Petroleum Industry Bill (PIB) which would have a huge impact on investments and profitability,” Adenikinju told BusinessDay.
Adeola Adenikinju who is also a member of the Monetary Policy Committee of the Central Bank of Nigeria (CBN) said the new petroleum minister needs to look at the oil and gas sector beyond just generating revenue but rather see it as value addition to other sectors of the economy.
“He needs to work with the economy team to ensure the sector is more integrated, revive the economy and contributes to the welfare of the economy including the Niger delta where he comes,” Adenikinju said.
An oil and gas consultant who chooses to remain anonymous said the new petroleum minister is not going to do anything unique or spectacular just like his tenure as governor of Bayelsa. “This is a clear sign of increased corruption because once we have a situation where a minister of petroleum has baggages of corruption cases, then there is nothing to cheer.”
“We can kiss every reform in the sector goodbye,” oil and gas consultant told BusinessDay.
Sylva, who was the governor of Bayelsa State under the platform of the People Democratic Party (PDP), defected to the All Progress Congress in 2014. And in 2017, the Economic Financial Crimes Commission (EFCC) returned the 48 houses earlier seized from him.
OPEC’s Secretary-General Mohammad Barkindo said Timipre Sylva will bring his rich experience to bear on his new and heavy responsibilities.
“OPEC looks forward to working with him to advance the implementation of the historic Declaration of Cooperation and Charter of Cooperation,” Barkindo said after president Buhari’s announcement.
Under the watch of Ibe Kachikwu, the oil and gas sector recorded relative improvement in the overall business environment, robust relations with international community’s while he also succeeded in getting the Senate to pass the Petroleum Industry Governance Bill (PIGB) after more than 17 years among others, however, there are still more challenges.
Also, topical issues such as organizing transparent oil licensing bid rounds, removing fuel subsidy, deregulating the downstream sector and liberalizing gas prices are some of the most urgent tasks awaiting Timipre Sylva.
Experts also said the new petroleum minister must boldly reform the downstream sector and abolish wasteful fuel subsidies. The Federal Government spent N7.9 trillion importing petrol to augment supply from the country’s rickety refineries, data from the National Bureau of Statistics (NBS) show.
Born in 1964 to an old trading family in Okpoma, at the exact site of the proposed Brass liquefied natural gas terminal, Sylva entered politics at the age of 27, winning the Brass seat in the local State Assembly. He set up his first marine support company serving the upstream sector in 1994.
Sylva, known locally as “Chief Sam”, worked as special advisor on petroleum to Edmund Daukoru, who served as Petroleum Resources Minister under ex-president Olusegun Obasanjo, advocating what he called a “Triple E” policy of Engagement, Empowerment and Enforcement to reverse a growing militant trend in the Niger Delta.
In a bid to discourage the rise of armed groups in the oil-producing states, Sylva ventured into the creeks to negotiate ceasefires with factions of the Movement for the Emancipation of the Niger Delta (Mend), seeking “arrangements” with camp commanders to restore peace.
Sylva strongly identifies as an Ijaw (Izon) man, and has been a keen advocate of locating oil resource and youth training centres inside the creek communities.
“If you’ve got an oil industry then you must be part of it, but not by destroying the goose that lays the golden egg,” he previously said in an Interview with News Agency of Nigeria (NAN).
Unlike his predecessor, Timipre Sylva may have an easier ride in his stint as petroleum minister, with APC winning more than 60 of the 109 Senate seats and having a majority in the Lower House of Representatives, according to results announced by Independent National Electoral Commission (INEC).
DIPO OLADEHINDE
