The dust generated by Federal Government’s recent decision to scrap the Department of Resources (DPR), Petroleum Equalisation Fund (PEF) and the Petroleum Products Pricing Regulatory Agency (PPPRA) appears not yet settled in the provisions of the Petroleum Industry Act (PIA) with stakeholders taking different stance on the matter.
The PIA in winding down the activities of the defunct agencies, usurped their responsibilities under two regulatory agencies; The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NPRA) and the Nigerian Upstream Regulatory Commission (NURC) in Abuja.
“I’m sure that that doesn’t cover, unfortunately, the chief executives, who were on political appointments”
He explained that with the passage of the PIA, the NPRA and NURC had taken over the functions of the DPR, PPPRA and PEF.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, stated this while speaking on the side-lines of the inauguration of the boards of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Regulatory Commission in Abuja.
Responding to a question on what would happen to DPR following the inauguration of the board of NURC, Sylva said, “It is now a matter of law.
“The law states that all the assets and even the staff of the DPR are to be invested on the commission and also in the authority. So that means the DPR doesn’t exist anymore.
“And, of course, the law specifically repeals the DPR Act, the Petroleum Inspectorate Act, the Petroleum Equalisation Fund Act and the PPPRA Act. The law specifically repeals them. It is very clear that those agencies do not exist anymore.”
On what would happen to the chief executives and employees of DPR, PEF and PPPRA, the minister replied, “The law also provides for the staff and the jobs in those agencies to be protected.
“But I’m sure that that doesn’t cover, unfortunately, the chief executives, who were on political appointments.”
He stated that the process for aligning the workers of the defunct agencies with the new regulatory bodies had already commenced, as the staff had to be rationalised.
Sylva said, “The authority has its staff coming from the defunct PEF, PPPRA and DPR. The commission has staff coming over from DPR and the process is going on for the next few weeks.”
FG, IPMAN assures workers, debt liability payment
But Sylva, has assured workers at DPR, PEF and PPPRA that their jobs were secured, despite the scrapping of the agencies necessitated by the Petroleum industry Act (PIA).
Sylva, who gave the assurances while visiting the affected agencies to douse the growing tension of job insecurity last Wednesday in Abuja, said no remuneration would also be lost, explaining that the PIA guaranteed their jobs in the new regulatory agencies, even as the assets and liabilities of the defunct agencies would be fully assumed by the successor agencies.
The minister, who said the process was ongoing as the implementation committee working on it, noted that the new CEOs would join the committee and work together to ensure that there is a seamless transition.
He said: “It is normal that at a junction like this, there are anxieties and that is why I thought I should come by myself along with the permanent secretary to assure you that this is a very normal transition. The PIA has been passed and the law stipulates that certain actions must be taken.
“That the DPR as it is then was to be wind down and two successor agencies were to be inaugurated. And of course myself, I have to step down as Chairman of the NNPC (board) as you all are aware. It is all because this is what the law states.”
But while some oil marketers had raised the alarm that its claims running into several billions were trapped in PEF as a result of the scrapping of PEF, National President of the Independent Petroleum Marketers Association of Nigeria(IPMAN), Mr. Sanusi Fari, at the weekend doused the tension, saying there was no cause for alarm.
Prior to the scrapping of PEF, IPMAN had said its members were being owed N42 billion.
The PEF is the Special Intervention Fund put in place by the Federal Government with the mandate to ensure price uniformity of petroleum products across the country, through the reimbursement of marketers for losses they incur in trucking products from depots to their filling stations anywhere in Nigeria.
The IPMAN President, in a statement at the weekend said there was no iota of truth in the claim by certain downstream oil sector industry operators that with the scrapping of PEF, the outstanding bridging claims owed marketers would not be paid.
Fari urged the members not to panic, maintained that the association has what it takes based on its close working relationship with the leadership of the National Association of Road Transport Owners, (NARTO) and the National Union of Petroleum and Natural Gas, (NUPENG) to ensure that payment of marketers bridging claims owed by PEF was not lost.
Stakeholders divided
But, while there seems to be assurances from all quarters that all is well and there was no cause for alarm,the immediate past Chairman of the Major Oil Marketers Association of Nigeria(MOMAN), Mr.Tunji Oyebanji, appears not comfortable with the scrapping of the agencies.
Oyebanji in response to Daily Sun inquiry of on the latest industry development said the scrapping of the agencies is a big challenge for operators.
He added that this will further portend confusion and duplication of efforts as the new agency will be responding to same requests, adding that it was better to have a single regulator.
But, partner, Bloomfield Law Practice and energy policy analyst, Mr. Ayodele Oni, said the move portends progress for the Industry, as it reduces the number of agencies whilst also allowing the Commission and the Authority created by the PIA to undertake functions being carried out by the entities that have now been scrapped.
‘‘With respect to the PPPRA and PEF, their scrapping is to foster the deregulation of the downstream sec.
SOURCE: sunnewsonline.com