The Senate on Monday confirmed former senator representing Rivers South-East, Magnus Abe, as Chairman of the Board of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC.
Abe, who is a political ally of Nyesom Wike, the minister of the federal capital territory, was screened by the senate committee on petroleum resources (Upstream) before receiving the approval of lawmakers.
The committee, chaired by Eteng Jonah Williams, senator representing Cross River Central, reviewed nominees forwarded by President Bola Tinubu for appointment as chairman and non-executive commissioners of the commission.
In line with the senate’s tradition for former lawmakers appearing for confirmation, Abe was asked to take a bow and go, a courtesy extended to former members of the National Assembly. This allowed the screening process to proceed quickly.
Speaking after the screening, Abe addressed the global rise in oil prices triggered by tensions involving Iran and the United States, US.
He described the situation as a global challenge rather than a problem unique to Nigeria.
According to him, while the crisis has pushed up fuel prices and created hardship for Nigerians, it could also lead to increased revenue from crude oil sales.
Abe noted that the surge in oil prices creates a balancing situation for Nigeria. Higher fuel costs may affect citizens, but the country could benefit from greater earnings from crude exports.
He also called for prayers for an end to the conflict, emphasizing that beyond economic consequences, the crisis is costing human lives.
The former lawmaker, who was also the 2023 governorship candidate of the Social Democratic Party, SDP, in Rivers State, urged Nigeria to take advantage of the situation by strengthening its energy sector.
He said rising oil prices could make investments in marginal oil fields more profitable. In addition, disruptions in global gas supplies present an opportunity for Nigeria to expand its gas production, which could create jobs and open new economic opportunities.
Abe expressed gratitude to President Tinubu for nominating him to serve on the board, describing the appointment as a privilege and a chance to contribute to the government’s Renewed Hope Agenda.
He also pledged that the incoming board would work with stakeholders to strengthen regulation in the petroleum sector.
Abe highlighted the role of the Petroleum Industry Act, PIA, in addressing longstanding challenges in the oil industry, including oil theft and tensions with host communities.
According to him, the Host Communities Fund ensures that local communities benefit from oil production, making them stakeholders in protecting oil infrastructure.
During the screening, another nominee for the NUPRC board, Paul Jezhi, pointed out discrepancies in crude oil measurements at custody transfer points as a persistent problem in the sector.
He recommended deploying modern metering technology to improve accuracy. Jezhi also suggested using drones and satellite surveillance to curb oil theft and pipeline vandalism, particularly in the Niger Delta.
President Tinubu had earlier written to the senate on January 5, seeking confirmation of 21 nominees for the boards of the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA.
Abe was nominated to serve as chairman of the NUPRC board, alongside other nominees including Jezhi and former petroleum regulator Sunday Babalola.
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