Open letter to General Muhammadu Buhari

Unoma Giese, a friend who likes to be known as “Numero Unoma”, recently sent me a good article she’d written and I’d like to share some excerpts with you.

The article is styled as an open letter to President-Elect, General Muhammadu Buhari, and it echoes a lot of my own views about oil industry and Niger Delta issues, in which I have a special interest because I come from an oil-producing area and was a founding member of the Presidential Oil/Gas Sector Reform Committee that drafted the original version of the Petroleum Industry Bill.

Dear General Buhari,

Sir, as a democrat and a patriot, I place my faith and trust in you; the notion of change sustains me, and I have to say, fuels me with the hope that I had completely lost some six months ago.
Buhari

Buhari

I am a Delta woman with children, hoping in a few years for grandchildren. Last week while driving through my state on my way back home to Abuja, I was dismayed to see the same gas flares still burning that have burned since I was a child. The flares are a constant reminder to us.

I know that the change you have promised us will include a fundamental overhaul of the petroleum sector, from the Minister, through to policy, to the way we see ourselves as an oil producer, and ultimately to how we best monetise this commodity. I was once a commodities and futures trader myself when I lived abroad and worked in wealth management for Merrill Lynch; so, my opinion is not completely uninformed.

We must recognise the era we are in. The exigencies of the petroleum sector in the 21st Century are not what they were in the ’70s, ’80s or ’90s. In 2015, it is more than likely that having had some 10 years of steady price rises, we will now be contending with oil prices oscillating between the low $30 per barrel and with a bit of luck, in two to three years rising to a steady $80 , give or take.

Given this scenario Sir, questions need to be asked:

How do we reposition our petroleum industry, not just in terms of name–plate stature as being a faithful and compliant OPEC member, but how do we use that tool to better the lives of Nigerians?

How do we sustain or gain market share for our light crude or our LNG, given that today the US is energy self-sufficient, and in East Africa you have the burgeoning gas producers who from a cost and FDI (foreign direct investment) perspective are competitive, and may well be favoured for investment over the next 10 to 15 years?

How do we manage our reduced oil revenue whilst at the same time trying to diversify Nigeria’s economy?
How do we credibly deal with the issue of rehabilitating and /or privatising refineries in a world where refining doesn’t always pay, and it may prove cheaper, albeit counter-intuitive on face value, to import refined products than to refine them locally? We need our refineries in Kaduna, Port Harcourt and Warri working at optimum capacity both for our national security, but also as being symbols that Nigeria is not a basket-case of kleptomania. Twelve months should be sufficient to get them up–and–running.

How do we deal with the matter of deregulation, to ensure that pumps all over the country all have PMS and DPK, as well as Lagos and Abuja? We are 36 states of the Federation and we demand to have product at uniform national price. We look for a deregulation that benefits the suffering masses and not just the business tycoons. It is painful to hear a Petroleum Minister tell us that her only achievement (supplying PMS) is giving us something that Nigerians as the fifth largest OPEC producer should regard as a right.

How do we deal with NNPC so that their fine career personnel are energised and given the confidence within the corporation to do their jobs properly and demonstrate their ability? We as a nation have invested billions in the staff of NNPC. They are professionals who, given the right leadership, can make Nigeria proud. They need to commercialise their corporation; I am certain they are aware of that. Give them the right leadership, Sir.

How do we turn our upstream sector into one in which we can focus on increasing our oil reserves, as well as focussing on increasing well-head production to 4mm barrels per day? This will help secure the future of our children and allow for the diversification of Nigeria’s economy.

In answer to these questions, there are even more questions:

Firstly, what do we (not want but) NEED in a Petroleum Minister?

Come May 29th, Nigeria needs to hit the ground running. The best hands and minds must be brought to the table to perform the great escape and re-direct Nigeria out of the mess we are in. For what it is worth, I would like to see an oil minister who:

Is not known for extravagance (sorry, this would not normally be a prerequisite, but given our most recent history, it has necessarily become one.)

Knows her/his brief – not just academically, but actually… . practically… demonstratively.

Has an antecedent reputation to uphold…because there is hardly a more effective accountability check than that.

Has the wherewithal to comport her/himself internationally, and give the impression to the world that Nigeria has indeed changed and is open for business, particularly in those sectors that require our counterparts to take us seriously. Ministers are the barometer for how the world sees us; they are the most important ambassadors we have.

Is driven by the principle that she/he does not want to fail, is guided by sound intuition, is steered by hands-on experience and is constrained by reserve.

Appreciates the enormity of the task ahead and appreciates just how important it is for Nigeria that things are done right in the petroleum sector…and can distinguish between right and wrong.

Seasoned professionals like Prof. Tam David-West, Odein Ajumogobia, Omamofe Boyo and Michael Prest – who have relevant experience and integrity – spring to mind as suitable possibilities…

Yours truly