The Department of Petroleum Resources (DPR), the Petroleum Products Pricing Regulatory Agency (PPPRA), and the Petroleum Equalisation Fund (PEF), has been effectively scrapped by the Federal Government, FG, with the inauguration of new regulatory bodies for the oil industry.
The newly inaugurated regulatory bodies are: the Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NPRA), and the Nigerian Upstream Regulatory Commission, (NURC).
The Minister of State for Petroleum Resources, Chief Timipre Sylva, revealed this to journalists in Abuja on Monday.
According to the Minister, the passage of the Petroleum Industry Act (PIA), has “invested the functions of the DPR, PPPRA, and the PEF on the newly inaugurated bodies.
While the Chief Executive Officers, (CEOs) of the thrashed agencies have been relieved of their duties, because they were political appointees, staff of the agencies might be retained. This is according to Minister Sylva.
On the law governing the body, in regards to appointments, Sylva said,
“…I’m sure that, that doesn’t cover, unfortunately, the Chief Executives, who were on political appointments; but that, the law provides for the staff, and the jobs in those agencies to be protected.
On what will happen to the Department of Petroleum Resources, (DPR), following the inauguration of the board of Nigerian Upstream Regulatory Commission, (NURC), Timipre Sylva said,
“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.
He emphasized that, 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. Sylva said.
The Minister of State for Petroleum Resources, Sylva, also disclosed 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 rationalized.” (Ripples Nigeria)
He 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.
Sylva again said, the inauguration of the new boards on Monday, marked the beginning of the successor agencies.
“The agencies have now taken off because they now have clear leadership and today’s event marks that beginning for the new agencies.
Minister Sylva said, the appointment of the board members were made after President Buhari presented the nominees to the national Assembly.
“…Mr. President in his wisdom, made the appointment a few weeks ago, and they went through a rigorous process of confirmation at the National Assembly.
Sylva established that, the agencies have taken off with new leaderships to stir the affairs of the new offices.
He expressed “optimism that investors would now take full advantage of the passage of the PIA to invest in the country’s oil industry.”
The Minister of State for Petroleum Resources, Chief Timipre Sylva stressed,
“The PIA provides for the upstream regulatory commission and the establishment of the midstream and downstream authority.
“Today, the PIA has clarified the legal framework around the sector, and the agencies are now in place. So I don’t see anything now stopping investors from coming. Nigerians should brace up for exponential growth in the oil and gas sector.”