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Home Editorial | Discourse | Opinion

As Prejudice Discounts Reps Committee’s Inquisition into NNPC’s Operations, NMDPRA’s Regulatory Interventions | THOMAS EMENIKE

by Newscoven
August 7, 2024
in Editorial | Discourse | Opinion
Reading Time: 6 mins read
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As Prejudice Discounts Reps Committee’s Inquisition Into NNPC’s Operations, NMDPRA’s Regulatory Interventions

Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Mallam Mele Kyari (left); Chief Executive Officer of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Alhaji Farouk Ahmed.

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“Committed interventionist operator like the NNPC and regulator like NMDPRA should not be hounded for keeping fidelity to their mandates. From the outset, Mele Kyari and Farouk Ahmed have doubled down on the delivery of their mandates…”

The nation has, in the last few weeks, been steeped in a rash of arguments between the management of Dangote Refinery and oil sector regulatory authority, to wit- the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA)- over the refinery’s operational practices, failure of adherence with standards, and other ancillary matters.

The arguments had prompted some desperate and compromised stakeholders to call for the removal of the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Mallam Mele Kyari and the Chief Executive Officer of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Alhaji Farouk Ahmed.

It is egregiously preposterous that some members of the House of Representatives would consider the call for the removal of Kyari and Ahmed from their respective offices as proper things to do by the authorities that appointed them. The call is utterly perverse and impetuous. It also paled into a needless push in the face of dispassionate discharge of the duties of their respective offices as clearly circumscribed by the extant laws from which they derive their functions and powers.

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Calling for the removal of Kyari and Ahmed when, sadly, the elephant in the room has not been exhaustively addressed, is jejune in the context of more significant matters engaging national attention. Unfortunately, and this is bad public relations for Nigeria, the dissonance arising from this has created adverse vibes, stimulated negative sentiments and produced troubling tidal waves for the country in the comity of nations-simply because at the centre of the hoopla is the critical oil and gas sector.

The very jaundiced position taken by some members of the House of Representatives in their sanctioned bid to investigate the factors working against the petroleum sector in the country is patently ill-advised and unfortunate. An unabashed pseudo-legislative assault on a petroleum sector operator and regulator during the pendency of investigation calls to question the neutrality and patriotism of the committee members, especially against the backdrop of feelers that some forces had compromised their integrity.

Globally, industries-including the oil sector- are regulated and Nigeria is not an exception. For the country to succeed and to tame the monster of corruption and improve ease of doing business, lawmakers need to be knowledgeable about the sector they oversight and do more in their oversight functions in the national interest, instead of allowing mundane and pecuniary issues to preponderate their sense of consideration and judgement.

All the extant regulations governing the actions of regulators in the entire petroleum industry value chain, especially the Midstream, Downstream and Upstream sectors, are circumscribed in the Petroleum Industry Act (PIA). What the Legislature needed to do was to find out if actions taken by the regulators aligned with the provisions of the PIA. If they aligned, then it would be needless to upbraid or threaten head of a regulatory agency with removal.

Blackmail or intimidation of oil sector operator and regulator by legislators, as had been done by some members of the House of Representatives, should not be allowed to gain legislative footing. Committed interventionist operator like the NNPC and regulator like NMDPRA should not be hounded for keeping fidelity to their mandates.

From the outset, Mele Kyari and Farouk Ahmed have doubled down on the delivery of their mandates; but, what, perhaps, they never took into account was the pain of those who were corruptly profiting from the old order and how desperate they were to undermine patriotic services to the fatherland. These elements are working round the clock to have them removed from their offices so that thy could continue with manipulating the system and plundering our commonwealth.

The intervention by Mele Kyari and regulation by Farouk Ahmed have upended the proclivity towards the economic sabotage of the past. With the leaderships in the saddle at the NNPC and NMDPRA, it is now business unusual. Rather than to kowtow to the antics of some vested interests, they have invoked the provisions of the extant law to tighten and strengthen operational and regulatory frameworks.

To build the falling walls of a country like Nigeria requires doggedness, commitment and discipline, bearing in mind that when the powerful and corrupt vested interests are challenged, they push back and seek to upset the apple cart. Despite the weight of evidence at the disposal of the regulator, the powerful vested interests are ahead in the media with their contrived narratives. The antics of taking selected groups on guided tours of facilities is commonplace and conduces to the contrived media narratives.

A fallout of the tours is the “hang them, crucify them”” mantra that has gained some traction in the National Assembly. This is extremely dangerous for our nation. It becomes even more dangerous if the appointing authorities pander to the media propaganda and trial.

The pressure and paid negative media campaign against Mele Kyari and Farouk Ahmed have become writ large. The patriotic ramifications of their operation and regulation of the petroleum sector and the many giant strides they have recorded in the saddle should commend them to President Bola Tinubu who is the substantive Minister of Petroleum Resources, to wit: to ignore the antics of those who never wished Nigeria well because of their selfish and pecuniary interests.

On the other hand, kudos should go to a group of patriotic members of the House of Representatives who, last Thursday, weighed in and dismissed the recent call by Honourable Philip Agbese for the removal of Kyari and Farouk as premature and against parliamentary culture.

Leading a 50-member strong House of Reps group, Honourable Billy Famous Osawaru (Edo State) maintained that it was against the rules of the House to jump into conclusions in a matter that was still under investigation by designated House Committee.

Honourable Osawaru had taught members of the other party a little bit of law and justice system administration that are anchored on the principle of fair hearing. He emphasized that parties should be afforded the right to fair hearing since investigation was still on, and that the committee handling the probe should not be preempted, influenced or distracted in the course of carrying out its legislative assignment.

The intervention by Osawaru and his colleagues should be commended as they would ultimately help to foster harmony and peace in the interactions between the oil sector operator, regulators, players and the legislature.

Similarly, stakeholders in the petroleum industry value chain must think about the good of Nigeria and place it above any other interest. Washing the supposed dirty linen of the country openly has not only brought shame to Nigeria at home, but also in the Diaspora. This is the time for the president to weigh in to stop the antics of anti-Kyari and Farouk Ahmed elements who are pushing for their removal by completely ignoring the elements.

Meanwhile, Nigerians must never lose sight of the quality and value of administration at the NNPC and the NMDPRA has brought to us. Interrogating the trajectories of Mele Kyari at the NNPC, and Farouk Ahmed at the NMDPRA obligatorily strengthens the imperativeness of commendation for their achievements, instead of the current vituperations from both political and business/investment cabals.

Mele and Farouk’s stewardships have been largely characterised by strategic operational investments and rigorous industry regulations that have boosted Nigeria’s oil and gas production environment and capacity as well as national development.

No country survives under a monopolistic market. Nigeria must be allowed to breathe. I hope the House of Reps members who are working in cahoots with vested interests to undermine operational and regulatory capacities in the oil sector realize the ramifications of their action. In any case, while one would want the investigation carried out to its logical conclusion, such a process must be stripped of any personal or political vendetta, victimization, mischief and muscle flexing.

Once the action stated supra is done, facts on ground will simply support the canonization of Kyari and Ahmed and not their contrived demonization. In particular, given the historical opacity in the administration of NNPC of yore, Mele Kyari should be commended for dismantling that culture through his Transparency, Accountability and Performance Excellence (TAPE) philosophy on which the company has been run since he stepped in the saddle in 2019 for profitability as well as publication of the financial books of the company for public information and scrutiny.

Focused transparency and accountability have been some of the key thrusts of the Kyari-led management at the NNPC since 2019, a practice that has since dismantled the charge of opacity and corruption in the operation of the national oil company. These should be celebrated. Simpliciter.

•Chief Emenike, a public analyst, writes in from Owerri

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