Oil and gas shift under president’s control sparks debate

Policy analyst Graham Hopwood has question the recent decision by president Netumbo Nandi-Ndaitwah to move the management of the oil and gas sector under the Presidency.

He raises questions on whether she will have time to oversee the efficient running of the oil and gas industries under her office.

Speaking to The Namibian yesterday, Hopwood said the move could be good but there is a need for clarity on how the structure will work.

“It is difficult to see how she will have the time, being the president of the country, to have oversight, So, therefore, what’s unclear is the structure going forward,” said Hopwood.

He added that the move could help speed up development in the industry while reducing bureaucracy.

“The oil companies and investors need to know that they can go straight to the Office of the President for issues so it could have a positive impact,” said Hopwood.

Oil expert Ibrahima Aminu says the move could discourage investors, as it creates an unpredictable environment.

“Investors seek transparent regulatory frameworks and clear legal protections. Moving the sector under direct political control could introduce uncertainties, discouraging long-term investments,” says Aminu.

He says the best global examples of successful energy sectors have independent regulatory oversight without political interference.

“Countries like Norway, Canada, and the United Kingdom provide strong examples where energy ministries operate independently, ensuring a clear separation between policy-making and commercial interests,” says Aminu.

To protect the country’s emerging oil and gas sector, it is crucial to establish clear institutional checks and balances, maintain regulatory independence, and adhere to global best practices in resource governance.

“Failure to do so could result in diminished investor confidence, weakened transparency initiatives, and long-term economic setbacks for Namibia’s promising energy sector,” says Aminu.

Former petroleum commissioner Imms Mulunga, however, says the practice is not unusual; however, the success will depend on who the president appoints as adviser.

“I believe it’s another good move. Depending on who she appoints as an adviser, it can hasten or slow down progress, but I trust in her judgement to appoint someone that can help her to make sure oil flows by 2030,” says Mulunga.

He says the president must have considered the importance of the industry to the economy of the country and, therefore, decided to keep it close.

He adds that this will also help to make sure the industry is not tainted with greed.

“Hence, her wisdom to put it directly under her leadership to make sure it’s not captured by unscrupulous elements with greedy private interests.”

During the announcement of her new Cabinet at State House in Windhoek last week, Nandi-Ndaitwah said the oil and gas industries will be managed in a way that will maximise its benefits to all Namibians.

“Yes, you have given powers to this president, and she is now using them for the benefit of the people,” she said.

Nandi-Ndaitwah said the government’s vision is to ensure resources are enjoyed by all Namibians.

“It was necessary that such projects are under the president to ensure the industry is structured in a way that creates value addition,” she said.