By Hon Abdullahi Mahmud Gaya
Prospects brought us together when I served as Chairman of the House Committee on Downstream (Petroleum) of the House of Representatives (2019–2023).
When the late president was the Minister of Petroleum, my committee’s oversight functions included a number of meetings with him along with NNPC management led by its former Managing Director, Malam Male Kyari, apart from meetings with the Minister of State for Petroleum Resources on the state of nation oil and gas development.
Through this experience, I came to understand that late President Buhari championed discipline in public service and lived a fulfilled life. He was audacious, prudent, contented, strong-willed, and placed the country above personal interests. He was a man who valued integrity and didn’t hide his feelings
Buhari’s administration implemented policies aimed at diversifying Nigeria’s oil and gas growth .Nigeria hosts the world’s 10th largest petroleum reserve with about 25 billion barrels and a gas reserve of 166 Trillion Standard Cubic Feet (TSCF). With the largest reserve in Africa, Nigeria has significant untapped hydrocarbon potential to advance its economic goals.
Nigeria having multiple Petroleum Acts with overlapping functions and responsibilities has lead to complexities in regulation, implementation, and governance of the petroleum industry.
Streamlining or consolidating these acts, like through the Petroleum Industry Act (PIA), and The Deep Offshore and Inland Basin Production Sharing Contract (PSC) are significant aspect of Nigeria’s petroleum industry both help clarify roles, reduce overlaps, and potentially improve efficiency in the sector
.As a lawmaker then, I am part of the legislative history when a landmark achievement occurred during the 9th National Assembly: President Muhammadu Buhari signed the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Amendment Bill into law.
The Act’s provisions stipulate that the law will be reviewed to ensure that if the price of crude oil exceeds $20 per barrel at any time, the Nigerian government’s share of revenue under the PSC will be adjusted. Buhari’s leadership helped establish key infrastructure and institutions in the petroleum sector, laying the groundwork for current reforms.
With political will and determination of the National Assembly ensure passage of the Act after two decades of unsuccessful attempts.The Act provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities, and related matters. It repeals the existing Acts:
However, there are transitional and savings provisions in the Act to address cases where licensees may not want to convert. Consequently, existing laws such as the Petroleum Profits Tax Act (PPTA) and the Deep Offshore and Inland Basin Production Sharing Contracts Act (DOIBPSA) will continue to apply until such leases have expired and/or are renewed under the new Act.
It is expected that with the signing of the Petroleum Industry Bill (PIB) into law, the objective of achieving 40 billion barrels of oil reserves and 4 million barrels per day would be attained. This would also leverage the country’s vast natural gas reserves to provide clean and efficient energy. This is because investors would be entering the sector with a clear legal framework in place..
The Petroleum Industry Act (PIA) has inaugurated a new era for the oil industry following years of legislative efforts to strengthen the legal, regulatory, fiscal, and governance framework of the petroleum sector. The new law is also expected to enhance the Nigerian petroleum industry’s reputation, open the door to new investment, and ultimately strengthen its position to meet the world’s growing demand for energy.
On August 16, 2021, history was made when President Muhammadu Buhari signed the Petroleum Industry Bill (PIB) into law, following its passage by the National Assembly in July 2021. Signing the Petroleum Industry Bill ended a long waiting since the early 2000s and marked a significant milestone for Nigeria’s oil industry and a historic achievement. The Act replaced the obsolete Petroleum Act of 1969. The PIB was first brought to the National Assembly in 2008 but faced several obstacles while undergoing numerous revisions and debates. After the bill became law, Buhari’s administration wasted no time in implementing critical aspects of the Act’s provisions.
In conformity with Petroleum Industry Act the existing agencies were scrapped and replaced with the new regulators; the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) while the Nigerian National Petroleum Corporation (NNPC) was transformed to a Limited Liability Company-the Nigerian National Petroleum Company Limited (NNPCL) which is poised to become the biggest, most capitalized and most profitable company in Africa.
The PIA would promotes safe and efficient operation of transportation and distribution infrastructure in the petroleum industry, along with a framework for developing third-party access arrangements to petroleum infrastructure.The Act gives top priority to host communities, seeking to protect and hasten their development, enhance peaceful coexistence between licensees or lessees and host communities, and create a framework to support host community development and foster sustainable prosperity. It also provides direct social and economic benefits from petroleum operations to host communities and provides for the incorporation of the Host Communities Development Trust. Buhari’s administration declared January 1, 2021, to December 31, 2030, as Nigeria’s “Decade of Gas”, aiming to harness the country’s gas resources for domestic use and export
Late President Muhammadu Buhari lived a good and fulfilled life as a leader, patriot, and statesman. His pedigree as a principled yet compassionate, strict but simple, gallant, good-natured, and God-fearing individual undoubtedly defined his strength, character, leadership style, and personality. Late PMB was a rare patriot who prioritized the nation’s well-being, standing firm through turbulent times with quiet strength, integrity, and a strong belief in Nigeria’s potential. As a patriotic Nigerian who loved and served his country more than himself, the late president embodied discipline and dedication as a public servant. Throughout his tenure as a former Military Head of State and democratically elected President, Buhari remained committed to instilling discipline nationwide. He also worked to foster a more orderly and progressive Nigeria, where the rights of the poor and vulnerable were protected.
No doubt his unblemished service and sacrifice in the annals of our dear nation will be etched in the hearts of well-meaning Nigerians who value integrity, humanity, responsibility, probity, and accountability over acquiring worldly materials in preference to earning God’s favor in the hereafter. I extend my profound condolences to the chief mourners, His Excellency President Bola Ahmed Tinubu GCFR, the government and people of Katsina State, his hometown Daura Emirate, and Nigerians, as well as the immediate family the patriot left behind.
May Almighty God grant all his loved ones and the nation the emotional strength and fortitude to bear the magnitude of the sense of loss foisted on the family, friends, colleagues, political associates, admirers, subordinates, and all Nigerians.
Hon. Mahmud Gaya, Former House of Representatives Member Representing Ajingi, Gaya, and Albasu Federal Constituency (2015–2023), currently Independent Non-Executive Director of Nigeria Sovereign Investment Authority & Non-Executive Director Nigeria Electricity Liability Management Company (NELMCO).
