LEKOIL Nigeria Urges Government to Seek Regulators’ Inputs on Executive Orders
Gloria Iroegbunam, General Manager of Legal and Company Secretary at LEKOIL Nigeria Limited, has emphasized the necessity for the Federal Government to engage regulators in the oil sector before issuing executive orders. In her paper titled ‘Practical Efficacy of Executive Orders in the Nigerian Petroleum Industry’, Iroegbunam argued that the collaboration of all stakeholders would significantly enhance the effectiveness of such orders.
“The petroleum industry stands as the backbone of the Nigerian economy, drawing substantial offshore and domestic investments. However, a significant challenge lies in the regulatory bureaucracy, which often hampers smooth operations and investment flows,” she stated. The overlapping responsibilities among various regulatory agencies further complicate matters, creating an intricate web of administrative hurdles.
She commended the Nigerian government’s efforts to streamline these processes through executive orders but highlighted the need for a thorough examination of their practical efficacy.
The complexities in the Nigerian petroleum industry are largely attributed to the convoluted regulatory framework. Iroegbunam noted that executive orders could have far-reaching positive implications if there is a concerted effort to align the interests and actions of all actors in the sector.
“A fundamental aspect of implementing executive orders lies in their legal standing. Executive orders are directives from the president that aim to manage operations within the Federal Government. However, their scope is inherently limited when they attempt to override or alter statutory regulations. In Nigeria, many regulatory processes within the petroleum industry are backed by laws enacted by the National Assembly,” she explained.
To prevent legal disputes, such as those seen in 2019 when a Federal High Court ruling negated the impact of executive orders lacking legislative backing, Iroegbunam stressed the importance of eliminating legal boundaries and regulatory constraints.
For executive orders to achieve their intended purpose, particularly in the petroleum industry, there must be candid collaboration between the government and regulatory bodies. Iroegbunam added, “These agencies are the custodians of the administrative processes that executive orders seek to streamline. Their involvement ensures that the orders are not only feasible but also practically enforceable. Moreover, engaging regulators in the drafting and implementation phases can pre-empt potential conflicts with existing statutory mandates, thereby enhancing the orders’ effectiveness.”
By fostering close cooperation between the government and regulatory agencies, executive orders can be crafted in a manner that not only aligns with legal frameworks but also addresses the operational realities of the petroleum sector. This approach is crucial to achieving the dual goals of regulatory efficiency and economic growth in Nigeria’s pivotal petroleum industry.
