In a swift move considered as a measure to avoid a conflict of interest, the newly appointed Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr Saidu Aliyu Mohammed, has withdrawn his acceptance of a board seat at Seplat Energy Plc.
Pinnacle Daily had reported that President Bola Tinubu, last week, named Mohammed as the new chief executive of NMDPRA following the resignation of Engr Farouk Ahmed.
Seplat stated on December 17 that Mohammed would join its board as an independent non-executive director beginning January 1. Later that day, Tinubu named him CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The Nigerian Senate confirmed Mohammed’s appointment following a rapid screening process on December 19.
In a statement on Monday, December 22, Seplat said it received a notification from Mohammed withdrawing his acceptance of the board role due to the regulatory nature of his new federal assignment.
The indigenous oil and gas company said Mohammed stepped aside because holding both roles would create a conflict of interest.
NMDPRA is a body regulating fuel refining, pricing, distribution, licensing, and infrastructure for Nigeria’s midstream and downstream sectors.
READ ALSO: Nigerians Demand Full Probe, Prosecution of Ex-NMDPRA CEO Farouk Ahmed
Because Seplat Energy is a major player in the very industry Mohammed is now tasked with regulating, holding both positions would have created a direct conflict of interest.
Seplat’s Company Secretary, Edith Onwuchekwa, noted that the company fully supports his national assignment and adheres to strict governance standards regarding board independence.
The Shake-up at NMDPRA
Mohammed takes over the leadership of NMDPRA at a high-stakes moment for the Nigerian oil and gas industry.
His predecessor, Farouk Ahmed, resigned following months of public friction and allegations of corruption and economic sabotage raised by Aliko Dangote.
The downstream regulatory agency is currently navigating critical issues regarding managing fuel import at a time when the country is tilting towards increasing local refining capacity, domestic crude supply obligations to local refineries, Dangote Refinery, and the transition to a fully deregulated fuel market.
Aside from Mohammed, the Senate also confirmed Oritsemeyiwa Eyesan as the new CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), completing a total reset of Nigeria’s top oil regulators.
Oritsemeyiwa Eyesan takes over from Engr. Gbenga Komolafe, who also resigned last week.
Profile: Who is Saidu Aliyu Mohammed?
Engineer Mohammed is a chemical engineer with nearly 40 years of experience. He previously served as the Group Executive Director (Gas and Power) at NNPC and was a key figure in developing the Nigerian Gas Masterplan and the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
