Executive Secretary of Nigeria Oil and Gas Implementation Committee Perspectives and Prescriptions On the Nigerian New Energy Policy As it affects NNPC.

Nigeria, the 10th largest global producer of oil is on the verge of reforming, and restructuring her national oil body to launch it into the same operational mode like Petrobras and Petronas. The responsibility of achieving this onerous task falls on the hands of the members of the nation’s Oil and Gas Implementation Committee (OGIC).

Dr Bello Aliyu Gusau, the Executive Secretary of OGIC is one of the prime movers of this transformation aimed at making NNPC more business-oriented, which in turn will increase bottom-line and add value to the life of the people of Nigeria who depends on the revenue from oil as the country’s major source of income. Our profile on parade – Bello Aliyu Gusau holds a doctorate degree in political economy and development studies. He once taught at Usman DanFodio University of Sokoto.

Dr. Gusau’s passion to ensure the systematic transformation of the nation’s oil and gas industry is so crystal that every word of knowledge from his mouth emphasizes the need to restructure Nigeria’s oil and gas industry. He did not mince an iota of word when he said: “The National Oil Company, the NNPC, would be the major beneficiary of the Reform Programme. The idea is to transform it from being essentially an amorphous cost centre saddled with multiple and often time conflicting roles of policy maker, regulator and commercial operator into a purely profit oriented commercial outfit that is sensitive to the bottom-line, and can raise its own funding, and above all operate beyond the Nigerian borders like many other National Oil Companies are doing currently.”

SUNNY OPUTA:

Why is the oil and gas reform necessary in the present day Nigeria?

BELLO ALIYU GUSAU:

Nigeria has been an oil producing nation for over half a century. By all streach of imagination this is a period within which we should pause and take stock on how this sector which is so critical to our national well being is performing. The outcome of this exercise evidently is that the oil and gas industry in Nigeria is performing well below its potentials. In addition, certain recurring problems have been bedeviling the industry across the petroleum value chain (upstream, midstream and downstream) that must be attended to, if the sector is to deliver the required maximum value to the nation.

Among these problems are funding of operations especially in the upstream sector, the provisioning of the nation with the desired products in the downstream, etc.

L-R Sunny Oputa and Dr. Bello Aliyu Gusau

SUNNY OPUTA:

When did this move to reform the oil and gas industry of Nigeria especially the national body NNPC commence?

BELLO ALIYU GUSAU:

It is as a result of this that the administration of President Olusegun Obasanjo set up the Oil and Gas Sector Reforms Implementation Committee (OGIC) in April, 2000 under the chairmanship of Dr. Rilwanu Lukman, then serving as Special Adviser to Obasanjo on Petroleum Matters, to come up with far reaching recommendations in order to provide maximum and sustainable benefits to the nation and its people.

It was this committee that drafted the new National Oil and gas policy for the nation’s petroleum sector. The National Oil and gas Policy, however, simply provided broad and general guidelines. For there to be any use to the sector, they must transform into concrete laws, institutions and processes. In order top accomplish the above, the new administration of President Umar Musa Yar ‘dua appointed a new OGIC, still under the chairmanship of Dr. Lukman to implement the National Oil and Gas Policy in September 2007.

SUNNY OPUTA:

What’s the level of acceptance or excitement within the rank and file of Nigerian community and stakeholders concerning the oil and gas reform?

BELLO ALIYU GUSAU:

There is widespread agreement in Nigeria among all the key stakeholders that these reforms are long overdue. Indeed, as President Yar’dua himself said these reforms should have been implemented 20 years ago. Our interaction with the stakeholders revealed not only acceptance of the basic thrust of the new policy, but great and intense excitement for its prescriptions to be turned into law, and be implemented.

SUNNY OPUTA:

Now that the new energy policy bill is in the National Assembly, what are the prime expectations and hindrances? And what’s the status?

BELLO ALIYU GUSAU:

The National Assembly is, without doubt, is keenly aware of the enormous importance of the Petroleum Industry Bill (PIB) currently before its two chambers to the nation. Indeed, we believe, the Assembly has decided to give accelerated treatment to the legislation. The bill has already gone through Second Reading in the House of Representatives. We have no doubt that the Senate would soon follow suit.

SUNNY OPUTA:

If the Oil & Gas Reform Bill is eventually passed into law, how will it accelerate internal growth and economic development in Nigeria?

BELLO ALIYU GUSAU:

The thrust of the new legislation is to provide a comprehensive, allencompassing legislation for the country’s oil and gas industry. In addition, it institute separation and clarity of roles between the different actors in the public sector of the industry especially in the three critical areas of policy formulation, regulation of the industry and commercial operation. In particular, the new law seeks to infuse strict commercial orientation in the business arms of the industry, especially, the Nigerian National Petroleum Corporation (NNPC).

The above is keeping with best global practices in governing oil and gas industries across the world. It would certainly pave the way for the oil and gas industry in Nigeria with means to live up to its potentials, and deliver maximum benefits to the nation.

SUNNY OPUTA:

The problem of the Niger Delta is the problem of humanity. How do you think that this problem could be curbed or minimized through the new oil and gas reform policy?

BELLO ALIYU GUSAU:

With or without oil the Niger Delta is a strategic part of Nigeria. In addition, the terrain is such that it requires extra attention by the Nigerian Government. Oil production in the region led to certain very real challenges in the area, including in particular environmental degradation, and threats to other forms of economic activities such as agriculture and fishing. Our proposal in the reform programme is for the government to be more proactive in dealing with the daily and continuous challenges emanating from oil production in the region, through systematic stakeholder and community involvement and consultation.

SUNNY OPUTA:

What does the future hold for NNPC?

BELLO ALIYU GUSAU:

The National Oil Company, the NNPC, would be the major beneficiary of the Reform Programme. The idea is to transform it from being essentially an amorphous cost centre saddled with multiple and often time conflicting roles of policy maker, regulator and commercial operator into a purely profit oriented commercial outfit that is sensitive to the bottom-line, and can raise its own funding, and above all operate beyond the Nigerian borders like many other National Oil Companies are doing currently.

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