Buhari Seeks Amendment of PIA 2 months after Passage.

President Muhammadu Buhari has requested that the Senate alter the Petroleum Industry Act 2021, which was passed by the National Assembly almost two months ago.

The request was written in a letter dated September 16, 2021, and was read out in session by Senate President Ahmad Lawan yesterday.

In the letter, President Buhari explained that the appointment of two non-executive members to the boards of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NPRA, and Upstream Regulatory Commission, URC, as provided by the Act, does not reflect balanced geopolitical representation.

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As a result, he proposed that Sections 11(2)(b) and 34(2)(b) of the PIA 2021 Administrative Structure be amended to raise the number of non-executive members on the boards of the NPRA and URC from two to six.

According to him, doing so will foster national unity and “provide a sense of participation and inclusion to almost every section of the country in the decision making of strategic institutions such as the oil industry”.

Furthermore, the President proposed removing Sections 11(2)(f), 11(2)(g), 34(2)(f), and 34(2)(g) of the Petroleum Industry Act, which would result in the removal of the Ministries of Petroleum and Finance from the Boards of the Nigerian Petroleum Regulatory Authority and the Upstream Regulatory Commission.

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He stated: “The proposed amendment will increase the membership of the board from nine (9) to thirteen (13) members that is representing 44 percent expansion of the board size.“This composition would strengthen the institutions and guarantee national spread and also achieve the expected policy contributions.

“The two ministries already have constitutional responsibilities of either supervision or inter-governmental relations. They can continue to perform such roles without being in the board.

“It is also important to note that administratively, the representatives of the ministries in the board will be Directors – being same rank with Directors in the institution. This may bring some complications in some decision making especially on issues of staff related matters.”

He also requested that Sections 11(3) and 34(3) be repealed and replaced with a new section stating that appointments to the Board of the Commission or Authority under Section 2 shall be made by the President, while those made under Section (2)(a), (b), and (c) shall be subject to Senate confirmation.

The President also requested that Section 41(2) of the Petroleum Industry Act be replaced with a new section stating that “there shall be five (5) executive directors for the Authority, whose appointment shall comply with the rules of the Federal Civil Service, each of whom shall be responsible for one of the following.”

In his proposed change, the President emphasized the importance of exempting serving public employees from the established confirmation process for political appointments.

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“This will ensure effective management of the regulatory institutions through uniform implementation of public service rules for employees of the Authority.

“In future, these positions will obviously be filled by the workers in the Authority through career progression in conformity with the rules and regulations of the Federal Civil Service,” Buhari said.