Reps demand stronger corporate governance, accountability in oil sector

The House of Representatives has called for stronger corporate governance and stricter accountability in Nigeria's oil and gas sector, warning that the success of the Petroleum Industry Act (PIA) must be judged by measurable results rather than the establishment of new structures.

The Speaker of the House, Abbas Tajudeen, represented by the Majority Leader, Julius Ihonvbere, made the call at a three-day stakeholders' summit on the implementation of the PIA in Abuja.

He said the commercial independence granted to the Nigerian National Petroleum Company Limited must be matched with accountability and transparency in its operations.

Ihonvbere identified crude oil theft, pipeline vandalism, investment uncertainty and regulatory bottlenecks as major challenges undermining the performance of the petroleum industry.

He called for stronger collaboration among relevant institutions and effective implementation of existing laws to address the problems.
The Speaker's representative stressed that the transformation of the oil and gas industry required more than legislative reforms, noting that the implementation of the PIA must translate into tangible benefits for the economy.

Also speaking, the Chairman of the House Committee on Petroleum Resources (Midstream), Henry Okojie, represented by Lanre Okunola, said the restructuring of NNPC Limited must produce measurable improvements in the country's oil and gas industry.

He listed increased production, improved domestic refining capacity, higher revenue generation and stronger energy security as key indicators for assessing the company's transformation.

Okunola stressed the need for the reforms to deliver practical outcomes that would strengthen the petroleum sector and improve its contribution to the national economy.
The convener of the summit, Doyin Adelabu, said the meeting was organised to assess the implementation of the PIA and identify gaps in NNPC Limited's corporate governance and accountability framework.

Adelabu said the engagement would provide an opportunity for stakeholders to examine the progress made under the law and recommend measures to address areas requiring improvement.

An industry expert, Nuhu Habib, described the implementation of the PIA as a work in progress, acknowledging improvements in financial reporting while raising concerns about board independence and revenue remittances.

He said these issues required attention to ensure that the reforms achieved their intended objectives and strengthened public confidence in the management of the country's petroleum resources.

The concerns raised at the summit centred on ensuring that NNPC Limited's transition into a commercially independent company resulted in improved operational efficiency, transparency and accountability.

The three-day meeting is expected to identify implementation gaps in the Petroleum Industry Act and develop recommendations for strengthening corporate governance, institutional oversight and performance across Nigeria's oil and gas industry.