Oil and Gas Expert, Olabode Sowunmi, has dismissed concerns that the simultaneous exit of two chief executives at Nigeria’s oil and gas regulatory agencies poses any immediate risk to the industry, insisting that institutions, not individuals, drive sector stability.
In an interview with ARISE News on Wednesday, Sowunmi said the resignations should be seen as part of a natural transition rather than a disruption, stressing that the oil and gas industry is built on systems designed to outlive leadership changes.
“It’s a development. It’s a reality that has come to stay. It is life. Things happen,” Sowunmi said. “I don’t think we necessarily have to give too deep an interpretation to it in terms of whether there’s going to be a revolution or not. The industry will remain. There will always be changes.”
Drawing an analogy, he added, “There will always be a general that comes and a general that goes. Another general comes. Soldier come, soldier go, barracks remain. That’s how the industry works.”
Addressing suggestions that the exits may signal a silent reset of the sector, especially given lingering controversies around the downstream regulator, Sowunmi said final decisions rested with the President and key stakeholders, who would have weighed the broader interest of the industry.
“I’m a consultant, not a mind reader. My job is to interpret the facts on ground,” he said. “There have been background issues, but the final decision lies with the President and stakeholders around him. I want to believe that they looked at the direction the industry should be going and the totality of what is in its interest.”
On fears that the departures could disrupt ongoing projects, weaken regulatory oversight or shake investor confidence, Sowunmi was emphatic that such risks were minimal.
“Risk can only apply when a system is not working,” he said. “A system is greater than an individual. I want to believe that the two gentlemen that left built systems. Those systems will move on.”
He acknowledged that new leadership could bring fresh ideas but insisted this would not undermine operations. “That’s not to say there won’t be changes in direction by the new people. That’s the whole idea of new blood. But in terms of operational risk, I don’t think so.”
Commenting on governance concerns and allegations of impropriety within the sector, Sowunmi said matters relating to law enforcement and accounting were outside his expertise, but emphasised that corporate governance frameworks already exist under the Petroleum Industry Act (PIA).
“The laws that ensure corporate governance are enshrined in the Petroleum Industry Act,” he said. “It is incumbent on those coming in and those remaining to ensure those laws work, so corporate governance becomes the watchword of the industry.”
He added that strengthening governance would ultimately benefit Nigerians. “That way, Nigerians are served with a better industry, better value for money, better products, and the industry grows to support Nigeria better.”
Turning to expectations for the incoming leadership, Sowunmi said the new heads of the regulatory agencies were inheriting an industry in transition and would need to assert clear direction.
“They are inheriting an industry going through a period of change,” he said. “I expect the new leadership to bring its own identity and direction. That is what will help harmonise the concerns of investors and existing industry players.”
According to him, the incoming downstream regulator would need to balance competing interests. “There are concerns from investors, as typified by what Aliko Dangote represents, and concerns from those with existing systems. Leadership will be required to chart a way forward.”
On the upstream regulator, Sowunmi expressed confidence in the capacity of the new chief executive, citing her experience within the NNPC structure.
“She has had a distinguished career within the NNPC group,” he said. “I have no doubt in her capacity to build on what exists, correct anomalies within and outside the system, and provide leadership. It’s also a very good signal for women in energy.”
He concluded that the changes should be viewed as continuity rather than crisis. “People grow, people come, people go. The system moves on.”
Boluwatife Enome
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