General News

Agbakoba calls for new model for Nigerian oil sector

A senior Nigerian advocate, Dr. Olisa Agbakoba, has urged the federal authorities to undertake the event oil mannequin as an alternative of the present mannequin referred to as contract oil.

The authorized professional stated this throughout a press convention in Lagos on Wednesday.

In line with Agbakoba, within the improvement oil mannequin, oil and fuel will not be solely seen as a income but in addition as an instrument for nationwide progress.

In a coverage paper titled “Rethinking Nigeria’s Oil and Fuel Governance”, he famous that the idea of improvement oil is in stark distinction to the normal contract oil method that Nigeria has applied through the years.

He argued that the present mannequin permits worldwide oil corporations to co-own joint ventures that extract oil, promote it and share the income with the federal government.

He stated the IOCs had an excessive amount of management over operations and argued that the Nigerian Nationwide Petroleum Firm Restricted didn’t play an energetic function in key operational choices.

The authorized scholar deplored the extent of capital flight within the petroleum business by funds to overseas contractors and repair suppliers, using overseas banks for transactions and the return of income to IOC international locations.

Agbakoba urged the federal government to undertake the event oil mannequin, which emphasizes energetic participation and management of the state within the administration of oil assets.

He sought to develop native refining capability, set up petrochemical industries and set up processing industries utilizing oil and fuel as uncooked supplies.

“Underneath this mannequin, a higher share of oil revenues are retained inside the nation. These revenues are strategically reinvested in infrastructure improvement, training and well being care, diversification of the financial system, and analysis and improvement in energy-related areas,” he stated.

“Create a brand new governance framework targeted on improvement, together with a single, robust, unbiased regulatory physique to make sure transparency and effectivity; and a restructured nationwide oil firm targeted on maximizing worth for nationwide improvement, as in Saudi Arabia.

“Provoke a nationwide debate on the optimum governance construction for the oil and fuel business, involving stakeholders from authorities, business, civil society and academia.”

Agbakoba pleaded for the repeal or modification of the Petroleum Trade Act on the grounds that it was inconsistent with the Nigerian Structure. Part 64(c) of the PIA is inconsistent with Part 162(1) of the Nigerian Structure.

“Draft new laws that’s in keeping with the event oil method. The emphasis needs to be on using oil and fuel assets for nationwide improvement,” he stated.

In the meantime, George Ene-Ita, spokesperson of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, in an interview with The Punch, disagreed with Agbakoba over the withdrawal of the PIA, which got here into impact barely three years in the past.

“I do not know why the SAN is asking for the repeal of a regulation that has not been applied for 3 years,” he stated.

The NMDPRA spokesperson stated there could also be requires a assessment of the regulation, however not for an outright repeal.

“The SAN is an establishment within the authorized observe. He is aware of what he’s speaking about. I’m simply saying that that is the doc we use to control the business. And till we see one other one, that is what we are going to use. It’s nonetheless a working doc and we are going to implement it as finest we are able to,” Ene-Ita added.

Additionally, the spokesperson of the Nigerian Upstream Petroleum Regulatory Fee, Olaide Shonola, advised our correspondent that the PIA is the perfect factor that has occurred to the oil business in current instances.

In line with Shonola, the regulation has been helpful and has achieved loads.

“For us, the PIA is a plus. The PIA shouldn’t be withdrawn as a result of it’s helpful,” Shonola stated.

Do you need to remove anything from this post or take it down due to copyright? please use the contact us page to get in touch with us

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button