Advocates Call for Shake-Up in Nigeria’s Oil and Gas Sector to Combat Corruption

A civil society group, Advocates of Justice in Africa (AJA), has urged President Bola Tinubu to extend his recent reforms in key intelligence agencies to the oil and gas sector, a critical area of Nigeria’s economy notorious for corruption and mismanagement.

The call follows Tinubu’s recent appointments of Adeola Ajayi as the new Director-General of the Department of State Services (DSS) and Mohammed Mohammed as the new Director-General of the National Intelligence Agency (NIA), decisions that have been widely praised as positive steps towards enhancing national security.

The convener of AJA, Johnson Ali Usman, issued a statement lauding the leadership changes at the DSS and NIA, describing them as “steps in the right direction.”

Usman highlighted that similar decisive action is urgently needed in the oil and gas sector to address longstanding issues of inefficiency, corruption, and systemic failures that have hindered the sector’s potential to contribute to national development.

Usman specifically called on President Tinubu to remove and replace the leadership of key regulatory bodies in the oil and gas industry, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian National Petroleum Corporation Limited (NNPCL), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

He argued that these organisations have failed to manage the sector’s vast resources effectively, resulting in widespread corruption and operational inefficiencies.

“The oil and gas sector has long been a critical pillar of Nigeria’s economy, yet its potential has been severely undermined by poor management, lack of accountability, and rampant corruption,” Usman stated.

“We are witnessing persistent fuel scarcity, frequent pipeline vandalism, and rampant oil theft, which together have led to billions of dollars being siphoned off through fraudulent activities.”

Usman emphasised that despite the sector’s vast potential to drive economic growth and development, it remains plagued by a lack of transparency and accountability.

These issues, he argued, are at the heart of the sector’s dysfunction and must be addressed urgently if Nigeria is to benefit fully from its natural resources.

The group contends that without significant reforms and new leadership committed to transparency, the sector will continue to be a significant drain on the nation’s resources.

The AJA’s call for reform in the oil and gas sector comes at a critical time as Nigeria faces multiple economic challenges, including declining oil revenues and a struggling currency.

The oil and gas sector is a significant contributor to the country’s GDP and foreign exchange earnings, making its efficient management crucial for Nigeria’s economic stability and growth.

However, the sector has been consistently dogged by issues that not only reduce its efficiency but also erode public trust.

Fuel scarcity has been a recurrent problem, causing hardship for millions of Nigerians and disrupting economic activities.

Pipeline vandalism and oil theft, often perpetrated by well-organised criminal networks, have also resulted in significant financial losses and environmental damage.

In many cases, the funds that should be directed towards national development are lost to corruption and fraudulent activities within the sector.

AJA’s statement stressed the need for a comprehensive overhaul of the leadership in the oil and gas sector, with a focus on appointing individuals with integrity, expertise, and a commitment to transparency.

Usman argued that only by installing new leadership that prioritises accountability can the sector be reformed to meet its potential.

He urged President Tinubu to act swiftly, noting that the continuation of the status quo would only deepen the sector’s problems and further erode public confidence.

“The leadership of the NUPRC, NNPCL, and NMDPRA must be scrutinised, and those found lacking in the commitment to transparency and accountability should be replaced,” Usman asserted.

“President Tinubu has demonstrated his willingness to make tough decisions for the betterment of Nigeria, as seen with the recent shake-ups in the DSS and NIA. We urge him to bring the same resolve to the oil and gas sector.”

The Advocates of Justice in Africa believe that comprehensive reforms, including leadership changes, are essential to unlocking the full potential of Nigeria’s oil and gas sector.

They argue that such changes would not only reduce corruption but also enhance the sector’s ability to contribute meaningfully to the country’s economic development.

With the right leadership in place, the group is optimistic that the sector can overcome its challenges and become a cornerstone of Nigeria’s economic resurgence.