Concerned experts in the petroleum industry have raised concerns over the irregularity in the recent reconstitution of the Nigerian National Petroleum Company Limited (NNPC Ltd) Board, citing non-compliance with the Petroleum Industry Act (PIA) 2021.
In a statement signed by Mr Abolade Adewale, released over the weekend, the experts called for the reversal of the appointment of Aminu Ahmed, a Senior Manager from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), as the Ministry’s representative on the Board.
They argued that the appointment violates Section 59(2)(d) of the PIA 2021, which stipulates that the NNPC Ltd Board shall comprise “a representative of the Ministry of Petroleum Resources (MPR), not below the rank of a Director.” The group emphasises that the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) is an independent regulatory agency, distinct from the Ministry, and therefore, its staff cannot represent the MPR on the Board.
The experts noted with great concern the recent appointment of Ahmed, a Grade Level 14 officer in the NMDPRA to represent the Ministry of Petroleum Resources on the NNPC Limited Board. “This is inconsistent with the provisions of section (59) sub section (2) sub (d) of PIA Act, 2021 and a grand conspiracy to usurp the Ministry at all cost.
They highlighted that the Federal Ministry of Finance (FMF) is represented on the same board by its Permanent Secretary, aligning with the PIA’s requirement for Ministerial representation. They urged His Excellency President Bola Tinubu, to maintain institutional parity by appointing a Permanent Secretary from the MPR to the Board.
The PIA provides that a representative of the MPR and the FMF not below the rank of a Director should be appointed as a member of the board, hence, the appointment of the Permanent Secretary, FMF as a member of the Board was in accordance with the PIA provisions. Whereas Ahmed is neither a Director nor a staff of the Ministry of Petroleum Resources.
They also addressed the issue of representation in international petroleum organisations, stating that the Ministry should lead delegations to bodies like Organisation of the Petroleum Exporting Countries (OPEC) and others as mandated by Section 3(1) (d) of the PIA. They criticised the practice of assigning non-Ministry officials to such roles based on nepotism, citing concerns over institutional memory and reputational risks.
“We therefore respectfully submit that all nominations to international engagements on Petroleum-related matters should kindly be made strictly among serving officials of the MPR through formal appointment by the Minister, as permitted under the law”, the statement added.
They called for a reaffirmation of statutory compliance and institutional mandate, urging the President to reverse the appointment of Ahmed and approve a high ranking officer of the Ministry of Petroleum Resources, which in this case should be the Permanent Secretary to be at a parity with the Federal Ministry of Finance Permanent Secretary as a member of the NNPC Ltd Board.
They expressed confidence that as the President Bola Tinubu, has always listened to valid judgments, and will take corrective action to uphold the integrity of the PIA 2021.