A renowned economist, Adekunle Disu has expressed optimism that Nigeria can be salvaged from the scourge of corruption, particularly in the oil and gas industry which has metamorphosed into a hydra-headed cankerworm. in recent times. Industry sources estimate that over $680billion is lost to corruption annually in the sector due to sharp practices in which the new petroleum industry bill (PIB) seeks to address.
Disu, who is also the Chief Executive Officer (CEO) of BOK Development Limited, while speaking on the topic; "Corruption in the oil industry" at the just concluded 2013 annual conference of the Nigerian Bar Association (NBA), Lagos branch, is optimistic that this colossal loss could be effectively checkmated if government will key his recommendations.
They include strong political will to deal with corruption, transparency in the activities of the Nigerian National Petroleum Company (NNPC) and amendment of some sections of the PIB, particularly as it concerns the powers of the minister of petroleum.
"To reduce the rot in the oil industry, there must be a strong political will to deal with the issue of corruption in our society. The corruption in the oil sector will only be a thing of the past if the political classes sincerely confront it strongly with every sense of altruism"
"There must be a truly transparent and competitive process in the bidding process for oil blocs and oil related contracts with strict adherence to rules that govern international best practices. There must be dichotomy between the regulatory authority (NNPC) and the prospective bidders"
"There must be adequate cost control and accounting procedures. Periodic accounting and audit by the NNPC and external audit firm will guarantee transparency and quality accountability," Disu recommends.
On the power given to the minister of petroleum in the current draft of the PIB, he is recommending a total review so as to avoid misuse of power by the occupants of the position.
The powers ascribed to the minister of petroleum in the current draft of the bill have been described as 'draconian and omnipotent' in various quarters which in itself could lead to corruptive practices that the bill seeks to eliminate. Under the current draft, the minister can inter-alia, grant and revoke leases unconditionally, determine royalties, decide the price of gas flaring and recommend members to the board of all the new companies and agencies.
Other powers that Disu is recommending for a review is the minister's ability to override the decisions taken by regulatory agencies, and to do all such other things incidental and necessary to the performances of the functions of the minister under the act. More disheartening is that the new PIB does not provide any mechanism to check possible abuse of these powers.
Disu charged civil society organizations not to relent in their efforts at tackling corruption but to be more conscious not only about issues related to the oil industry but to issues in governance generally.
"I believe that Nigeria can be salvaged from the scourge of corruption. I believe that the future of our country is bright. But we need to muster the courage at the political level to begin the process of cleansing the Nigerian stable. Only then can our efforts at economic development and social stability begin to yield fruit", Disu contended.
