Senate panel warns petroleum regulators against sabotage

Screenshot of Senate at plenary

The Senate Committee on Petroleum Downstream has warned petroleum regulatory agencies against sabotaging the nation’s economy and undermining government policies in the oil and gas sector.

The committee chairman, Kawu Sumaila (APC, Kano South), gave the warning on Thursday at the National Assembly during the screening of nominees for executive director positions at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Mr Sumaila said acts of sabotage by government agencies could frustrate the implementation of government policies, weaken regulatory institutions and erode public confidence.

He said the National Assembly would not tolerate such practices.

“Some agencies are simply not helping Mr President in the actualisation of his vision for the petroleum sector. This must stop,” he said.

Mr Sumaila acknowledged the rising cost of petroleum products and its contribution to the economic hardship facing Nigerians. He urged regulators to look beyond enforcement and develop practical measures to ease the burden on citizens.

“Beyond the enforcement of regulations, you must explore practical and sustainable measures to mitigate the impact of these reforms on citizens and contribute meaningfully towards alleviating their economic hardship.

“Regulation must not be punitive; rather, it must be progressive, transparent, responsive and people-centred,” he stated.

The committee chairman further warned that the lawmakers would not tolerate administrative sabotage, lack of transparency, inefficiency or any conduct capable of undermining the effective implementation of government policies.

“Under our watch, we will not tolerate administrative sabotage, lack of transparency, inefficiency or any conduct that undermines the effective implementation of government policies,” he said.

The warning comes amid lawmakers’ earlier concerns over alleged economic sabotage and regulatory failures in Nigeria’s petroleum industry.

In July 2024, the Senate constituted an ad hoc committee, chaired by Senate Leader Opeyemi Bamidele, to investigate alleged economic sabotage in the sector, particularly the importation of hazardous petroleum products, dumping of substandard diesel and billions of dollars spent on maintaining the country’s state-owned refineries without commensurate results.

The committee also invited the management of the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Central Bank of Nigeria and other government agencies to explain their roles in the challenges confronting the sector.

The committee has yet to produce its report.

The nominees who appeared before the committee included Abiodun A. Adeiji, nominated as Executive Director, Finance and Accounts; Ogbugo Ukoha, Executive Director, Distribution, Systems, Storage and Retailing Infrastructure; and Mustapha Lamorde, Executive Director, Health, Safety, Environment and Community.

Others were Mobolaji Musa, nominated as Executive Director, Hydrocarbon Processing Plants, Installation and Partnership and Transportation Infrastructure; Ogechukwu Modie, Executive Director, Economic Regulation and Strategic Planning; Said Abutalib, Executive Director, Corporate Services and Administration; and Jumoke Gafar, Executive Director, Board Secretary and Legal Adviser.

The committee cleared the nominees after members supported their clearance by voice vote.

Mr Sumaila congratulated them and urged them to justify the confidence reposed in them by delivering on their respective mandates.

The committee’s report will be presented to the Senate plenary for consideration and a final decision on their confirmation.

Under the Senate’s confirmation process, nominees cleared by committees are usually confirmed by the whole chamber, provided there are no substantive objections or petitions against them.