Senate warns oil regulators to stop economic sabotage

The Senate Committee on Petroleum Downstream has warned petroleum regulatory agencies not to sabotage the country's economy and government policies in the oil and gas sector.

The committee chairman, Kawu Sumaila (APC, Kano South), gave this warning on Thursday at the National Assembly. This was during the screening of nominees for executive director positions at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Mr Sumaila said that sabotage by government agencies could hurt the implementation of government policies. It could also weaken regulatory bodies and damage public trust.

He emphasized that the National Assembly would not accept such actions. “Some agencies are simply not helping Mr President in the actualisation of his vision for the petroleum sector. This must stop,” he said.

Mr Sumaila also acknowledged the rising costs of petroleum products and how it adds to the economic struggles of Nigerians. He urged regulators to think beyond just enforcement and to come up with real solutions to ease the burden on citizens.

“Beyond the enforcement of regulations, you must explore practical and sustainable measures to mitigate the impact of these reforms on citizens and contribute meaningfully towards alleviating their economic hardship.

“Regulation must not be punitive; rather, it must be progressive, transparent, responsive and people-centred,” he stated.

The committee chairman further warned that lawmakers would not accept administrative sabotage, lack of transparency, or any actions that could undermine effective government policy implementation.

“Under our watch, we will not tolerate administrative sabotage, lack of transparency, inefficiency or any conduct that undermines the effective implementation of government policies,” he said.

This warning follows earlier concerns from lawmakers about alleged economic sabotage and regulatory failures in Nigeria’s oil industry. In July 2024, the Senate set up an ad hoc committee led by Senate Leader Opeyemi Bamidele to investigate claims of economic sabotage in the sector. This includes the importation of dangerous petroleum products, dumping of low-quality diesel, and the large sums spent on maintaining the country’s state-owned refineries with little success.

The committee also invited the management of the Nigerian National Petroleum Company Limited (NNPCL), NMDPRA, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Central Bank of Nigeria, and other government agencies to explain their roles in the challenges facing the sector.

So far, the committee has not released a report. The nominees who appeared before the committee included Abiodun A. Adeiji, nominated as Executive Director, Finance and Accounts; Ogbugo Ukoha, Executive Director, Distribution, Systems, Storage and Retailing Infrastructure; and Mustapha Lamorde, Executive Director, Health, Safety, Environment and Community.

Others included Mobolaji Musa, nominated as Executive Director, Hydrocarbon Processing Plants, Installation and Partnership and Transportation Infrastructure; Ogechukwu Modie, Executive Director, Economic Regulation and Strategic Planning; Said Abutalib, Executive Director, Corporate Services and Administration; and Jumoke Gafar, Executive Director, Board Secretary and Legal Adviser.

The committee approved the nominees after members supported their clearance by voice vote. Mr Sumaila congratulated them and urged them to prove they deserve the trust placed in them by fulfilling their duties well.

The committee's report will be presented to the Senate plenary for consideration and a final decision on their confirmation. Under the Senate’s confirmation process, nominees cleared by committees are usually confirmed by the whole chamber unless there are serious objections or petitions against them.