Mr Gbenga Komolafe, Chief Executive Officer of the new Nigerian Upstream Regulatory Commission (NURC)
… As CBN says banks remain stable, resilient despite pandemic***
Mr Gbenga Komolafe, Chief Executive Officer, Nigerian Upstream Regulatory Commission (NURC), has assured staff of its defunct Department of Petroleum Resources (DPR) of no job and entitlements losses.
NURC, which replaced the defunct DPR, comprised the regulatory framework for the oil and gas industry, as provided for, by the Petroleum Industry Act (PIA).
Komolafe gave the assurance on Thursday in Abuja, while addressing management staff of the newly-created commission at its maiden meeting.
The newsmen report that Chief Timipre Sylva, Minister of State for Petroleum Resources, inaugurated the CEO and members of the Governing Board of the new entity on Oct. 20.
The new CEO also pledged to maintain an open door policy and be fair and just, as well as address every issue in the commission adequately, to spur oil and gas industry development.
The industry technocrat, while stating that changes actually create anxiety and uncertainty in minds of people, noted that people’s jobs are protected under the law.
“Expectation of the law is that people’s jobs are protected under the law, notwithstanding that job location and responsibilities might automatically change.
Also read: Nigeria crude oil production averaged 1.451 mb/d in September – OPEC
“The law also provides that people will not be placed below their previous positions. Our concern is to work to ensure that there is no job stoppage and disruptions of activities in the sense that the industry is time sensitive,” he said.
He called on the staff to embrace team work, having in mind that the challenges ahead are quite enormous.
“Setting up a brand new organisation is not an easy task, but from the expectation of the Act, we are setting a new organisation to put in place a 21st century organisation with brand new culture and vision.
“My leadership will be very objective and fair to all and sundry and subsequently, I will be engaging the staff for productive output and economic growth,” he said.
The minister also inaugurated the governing board and CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which replaced the Petroleum Equalisation Fund (PEF) and the Petroleum Products Pricing Regulatory Agency (PPPRA).
The inauguration of the two bodies are critical steps to ensuring effective regulation and best practices in the sector, in line with global standards, he said.
In another development, the Central Bank of Nigeria (CBN) says banks in the country have remained stable, robust and resilient in spite of the COVID-19 pandemic.
The Director, Banking Supervision of CBN, Mr Haruna Mustafa, said this at the 2021 Financial Correspondents Association of Nigeria (FICAN) workshop in Ibadan on Friday.
Mustapha, represented by Mr Adekunle Adeniji, the Assistant Director, Banking Supervision, CBN, said the Capital Adequacy Ratio (CAR) rose to 15.21 per cent as at August, Liquidity Ratio (LR) rose to 42.23 per cent.
He said non-performing loan ratio improved from 6.58 per cent to 5.9 per cent as at August 2021, while banking system credit to the economy increased to 10.99 per cent between January and August.
Mustafa noted that the regulatory measures taken by CBN contributed to the growth.
He listed some interventions by the apex bank to lessen the impact of the pandemic to include reduction in interest rates to five per cent.
Others are: 50 billion naira target credit facility for households and Small and Medium Enterprises (SMEs) and re-enactment of Banks and Other Financial Institutions Act (BOFIA 2020) to strengthen the regulatory and resolution architecture for banks and other financial institutions.
The director said CBN would continue to develop additional counter cyclical policy options that could be utilised in periods of stress.
Mustafa explained that macro-prudential regulation and supervision was more critical now than ever.
“We expect financial services to be provided more in a digital manner.
“We will continuously update and assess our prudential rule books and policy to strengthen responses to economic and financial shocks.
“We will continue to deploy effective stress testing methodologies to detect vulnerabilities early to enable appropriate pre-emptive action,” he said.
Mustafa explained that the banking sector had also sustained the growth of key economic activities, which were impacted by the pandemic in the agriculture, manufacturing, retail, healthcare, hospitality and tourism sectors.
