About the PC
The Oil & Gas Policy Commission is one of the eight Policy Commissions of the NESG through which issue specific recommendations of the annual Nigerian Economic Summit (NES) are prioritized by a core group of stakeholders, and followed up to ensure adoption and implementation by the relevant policy implementing agencies or stakeholder groups.

The Oil & Gas Policy Commission, popularly called OGPC, meets regularly after each NES to review the recommendations, develop implementation priorities, and interface with relevant actors to ensure sustained follow up on implementation. Members   initiate and commission studies, research work and  secondary dialogue processes that are necessary to facilitate successful implementation.

AREAS OF COVERAGE
To effectively carry out its activities with regard to addressing major issues that were compiled via public debates, with members and Nigeria’s intellectual community those items challenging the sustainable development of the oil and gas sector at the 12th Economic summit in 2006, the OGPC leadership deemed it right to further create a number of Sub-Committees with their various terms of references. These include:

LEADERSHIP OF THE COMMISSION
The following comprises the names of the leadership of the Policy Commission:

Report of 2007 Activities
The highlights of the activities of the OGPC and its various Sub-Committees in 2007 are as described below:

NES # 13 OGPC RECOMMENDATIONS

FOCUS GROUP DISCUSSION:
On November 8, 2007, the Oil & Gas Policy Commission (OGPC), in collaboration with the World Bank, convened a Focus Group Discussion with key stakeholders in the oil and gas industry on the status of Nigeria’s petroleum downstream sector and options for the sector’s reform. At the event, the Downstream Sub-Committee presented a paper, which represented the general position of the OGPC. Following the outcome of all the presentations and contributions/discussions, a communiqué was issued on the way forward for the sector. (See below communiqué)

FOCUS GROUP DISCUSSION COMMUNIQUE

1. Pricing policies
   The current control of retail prices for petroleum products below their market level discourages participation of the private sector in refineries and the petroleum downstream infrastructure, as the private sector cannot be assured of cost recovery and profitability. Moreover, the petroleum subsidy is a drain on the budget and its effectiveness in achieving the intended social objectives questionable.  

   To remedy this situation and create conditions more favorable to participation of the private sector, the workshop recommends the following short- and long-term steps:
   
   Short-Term
   In the short term, it will be essential that petroleum subsidies are explicitly budgeted for (including with clear indication of the intended recipients) and that access to the subsidy follows transparent rules. The current system in which NNPC retains much of the subsidy before transferring oil revenue to the budget lacks transparency and accountability.
   
   Medium to Long-Term
   Petroleum subsidies do not benefit the poor and encourage waste, inefficiency, and rent-seeking in the importation and distribution of petroleum products. To be more effective as a means of social protection, the petroleum subsidy should be replaced by targeted subsidies over the medium-term (e,g. in the agricultural and transportation sectors).  Such measures should be designed based on a poverty and social impact analysis and extensive stakeholder consultations and a public information campaign. The full liberalization of petroleum prices will be essential to create conditions for an effective and vibrant petroleum downstream sector driven by the private sector.   

2. Role of NNPC in importation and distribution of petroleum products
   NNPC’s current dominant role in importation, marketing and distribution of petroleum products discourages private sector participation and is an important factor in the decay of storage depots, pipelines and other facilities within the downstream infrastructure. 
   
   To expand the space for the private sector, NNPC should limit its role in the importation and distribution of petroleum products. This limitation of NNPC’s role could be an important element in the ongoing restructuring plans
   
   
3. Deregulation 
   To create a level playing field for the private sector, it will be important to fully deregulate the petroleum downstream sector. To facilitate deregulation, key institutions such as the Petroleum Inspectorate Commission and Petroleum Products Distribution Authority should be strengthened and refocused with a view to enabling them to perform a genuine regulatory function.
   
   Key aspects of this deregulation should be to ensure open third-party access and transparent, non-discriminatory tariffs. 
   
   
4. Management of refineries
   Privatization of refineries will be the most effective way of ensuring the recovery of the sector. With a view to improving the performance of refineries prior to their privatization, consideration should be given to placing them under private management contracts.  These contracts should entail clearly spelled-out performance benchmarks, and provide the private management firm with assurances that the funds required for essential maintenance and operations are available.
   
   The workshop urged the government to avoid large-scale capital expenditure aimed at full rehabilitation of the refineries before privatization, as such programs have not proven effective in the past. 
   
   
5. Public outreach
   For the reform program to be effective it will be essential that the government works closely with all stakeholders and conducts extensive outreach with the public to inform them about the causes of the decline of the sector and the benefits of the chosen direction of reforms.    

WORK PLAN - 2008
The schedule of proposed activities and the approach is as summarized below:

CURRENT AREA OF ACTIVITY:
NATIONAL POLICY DIALOGUE ON PRACTICAL MULTI-STAKEHOLDER APPROACH FOR SUSTAINABLE RESOLUTION OF HOST COMMUNITY INSPIRED BUSINESS INTERRUPTION RISK IN THE NIGER DELTA REGION BY CORPORATE NIGERIA – THE OGALA INITIATIVE

As part of efforts to carry out its 2008 programmes, the OGPC is planning to hold a national dialogue on a multi-stakeholder approach for the resolution of the Niger Delta crisis. This will take place before the end of August, and it is expected to be driven by the Private Sector, with a view to bringing together key players from corporate Nigeria and other relevant stakeholders to
A-Day National Policy Dialogue as part of the build up to the Presidency’s Niger Delta Summit. 

The key highlight of the Dialogue will be a formal presentation by an international consultant appointed, who will speak on new initiatives for the resolution of this rising risk based on successfully executed models from other countries such as Canada and South Africa, and utilizing guidelines from the Presidency on the proposed Niger Delta Summit.