Parliament denies Nandi-Ndaitwah oil regulatory powers - for now
MPs question rush to amend petroleum legislation
President Netumbo Nandi-Ndaitwah’s bid to take direct control of Namibia’s oil and gas industry has triggered constitutional and political debate, as her administration seeks to shift key petroleum functions from the energy ministry to the Office of the President, even though the Petroleum (Exploration and Production) Act of 1991 has not yet been amended.
Under the Namibian Constitution, the president has the authority to reassign the administration of laws or sectors among Cabinet members.
Article 32(3)(i)(bb) empowers her to designate which minister or office oversees a portfolio.
Using this power, Nandi-Ndaitwah has moved the coordination and policy oversight of the oil and gas sector to her office.
However, the 1991 Act still vests licensing, regulatory and enforcement powers in the industries, mines and energy minister. In effect, the ministry remains the statutory regulator, while the president currently exercises policy and supervisory authority only.
The new petroleum amendment bill, tabled as an urgent measure by defence minister and acting minister of industries, mines and energy, Frans Kapofi this week, seeks to bridge that gap by transferring those statutory powers to the Presidency.
If passed, it would create a new upstream petroleum unit within the Office of the President, headed by a director-general and deputy director-general.
Specialised energy lawyer Shakwa Nyambe yesterday explained that until the Act is amended, the statutory power will remain with the energy minister, in consultation with the upstream petroleum unit.
Nyambe added that the acting energy minister is currently barred from entering into any new contracts because of the existing moratorium.
Centralise oil and gas oversight
Kapofi told parliament this week that the goal of consolidating control of the petroleum sector under the Office of the Presidency is to ensure "that our technical, regulatory and compliance functions are brought under a single professional institution, one capable of responding to the demands of a fast-growing petroleum industry with efficiency and expertise.”
He explained that the director-general would serve as principal regulator for licensing and compliance, while the deputy would handle day-to-day technical operations.
“This structure establishes clear lines of authority, improves coordination and enables faster, evidence-based decision-making in technical matters,” he said.
Kapofi also introduced new fiscal-transparency clauses. “All remissions, deferrals or refunds of petroleum royalties must be reported annually to the National Assembly by 30 June.
"This ensures that parliament remains fully informed about the management of petroleum revenues and that the executive branch remains accountable for every concession granted under the law,” he noted.
Handing over control
Earlier this year, Nandi-Ndaitwah announced a ministerial rearrangement that placed the oil and gas portfolio under her direct supervision.
Sources say the proposed amendments are geared towards formalising this in law.
The president has said the goal is to maximise national benefits from the Orange Basin discoveries, with first oil projected between 2029 and 2030.
The president's recent dismissal of deputy prime minister and industries, mines and energy minister Natangue Ithete, accused of violating a presidential moratorium on oil deals, underscored the consolidation of control. Ithete allegedly renewed an expired licence linked to Paragon Holdings, owned by Desmond Amunyela and Lazarus Jacobs, without presidential approval.
Although he may have acted within his formal ministerial powers, insiders claim his failure to obtain the president’s consent reportedly cost him his job.
MPs question the bill’s urgency
When parliament met to decide whether the bill qualified as urgent this week, opposition MPs objected, including Independent Patriots for Change (IPC) MP Elvis Lizazi.
“There is not even a drop of oil being produced in Namibia yet. It would take at least ten years before we go commercial, ten years before Namibia produces a single drop of oil. Those were their words, not mine. So where is the urgency?” he asked.
He argued that parliament is neglecting more pressing bills.
“Unless there are vested interests somewhere, I do not see the justification. The executive seems to be taking precedence over the legislature,” he said.
Lizazi recalled former president Hifikepunye Pohamba’s cautionary words: “We hope this oil will not be a curse on Namibia,” adding that “we can only hope that this law, which seeks to centralise power in one individual, will not become a curse upon our country."
He and others voiced their support for a postponement of debate on the amendment bill until March 2026.
Clarify rules of urgency
Popular Democratic Movement (PDM) MP Inna Hengari criticised the bill’s classification as urgent, saying it amounted to an abuse of Rule 193, which governs such motions.
“We have just received a few pieces of paper before us, but even after going through them, it is clear that what this bill seeks to do is to amend existing legislation. Therefore, honourable Speaker, I do not believe that this bill qualifies as an urgent bill,” she said.
Hengari called on the presiding officer to clarify how the urgency was determined, warning that motions were being introduced without notice, leaving MPs unsure of what they were debating.
In defence of the bill, deputy defence minister Charles Mubita said the amendment was both essential and urgent.
“There is one key aspect overlooked. What makes this bill more urgent than others? It is simply because this bill calls for transformation. It seeks to transform an existing instrument of government and ensure proper governance of the oil and petroleum industry,” he said.
“Governance and transformation, for me, those two words justify why this bill should be considered not only important but also urgent,” Mubita added.
[email protected]
Under the Namibian Constitution, the president has the authority to reassign the administration of laws or sectors among Cabinet members.
Article 32(3)(i)(bb) empowers her to designate which minister or office oversees a portfolio.
Using this power, Nandi-Ndaitwah has moved the coordination and policy oversight of the oil and gas sector to her office.
However, the 1991 Act still vests licensing, regulatory and enforcement powers in the industries, mines and energy minister. In effect, the ministry remains the statutory regulator, while the president currently exercises policy and supervisory authority only.
The new petroleum amendment bill, tabled as an urgent measure by defence minister and acting minister of industries, mines and energy, Frans Kapofi this week, seeks to bridge that gap by transferring those statutory powers to the Presidency.
If passed, it would create a new upstream petroleum unit within the Office of the President, headed by a director-general and deputy director-general.
Specialised energy lawyer Shakwa Nyambe yesterday explained that until the Act is amended, the statutory power will remain with the energy minister, in consultation with the upstream petroleum unit.
Nyambe added that the acting energy minister is currently barred from entering into any new contracts because of the existing moratorium.
Centralise oil and gas oversight
Kapofi told parliament this week that the goal of consolidating control of the petroleum sector under the Office of the Presidency is to ensure "that our technical, regulatory and compliance functions are brought under a single professional institution, one capable of responding to the demands of a fast-growing petroleum industry with efficiency and expertise.”
He explained that the director-general would serve as principal regulator for licensing and compliance, while the deputy would handle day-to-day technical operations.
“This structure establishes clear lines of authority, improves coordination and enables faster, evidence-based decision-making in technical matters,” he said.
Kapofi also introduced new fiscal-transparency clauses. “All remissions, deferrals or refunds of petroleum royalties must be reported annually to the National Assembly by 30 June.
"This ensures that parliament remains fully informed about the management of petroleum revenues and that the executive branch remains accountable for every concession granted under the law,” he noted.
Handing over control
Earlier this year, Nandi-Ndaitwah announced a ministerial rearrangement that placed the oil and gas portfolio under her direct supervision.
Sources say the proposed amendments are geared towards formalising this in law.
The president has said the goal is to maximise national benefits from the Orange Basin discoveries, with first oil projected between 2029 and 2030.
The president's recent dismissal of deputy prime minister and industries, mines and energy minister Natangue Ithete, accused of violating a presidential moratorium on oil deals, underscored the consolidation of control. Ithete allegedly renewed an expired licence linked to Paragon Holdings, owned by Desmond Amunyela and Lazarus Jacobs, without presidential approval.
Although he may have acted within his formal ministerial powers, insiders claim his failure to obtain the president’s consent reportedly cost him his job.
MPs question the bill’s urgency
When parliament met to decide whether the bill qualified as urgent this week, opposition MPs objected, including Independent Patriots for Change (IPC) MP Elvis Lizazi.
“There is not even a drop of oil being produced in Namibia yet. It would take at least ten years before we go commercial, ten years before Namibia produces a single drop of oil. Those were their words, not mine. So where is the urgency?” he asked.
He argued that parliament is neglecting more pressing bills.
“Unless there are vested interests somewhere, I do not see the justification. The executive seems to be taking precedence over the legislature,” he said.
Lizazi recalled former president Hifikepunye Pohamba’s cautionary words: “We hope this oil will not be a curse on Namibia,” adding that “we can only hope that this law, which seeks to centralise power in one individual, will not become a curse upon our country."
He and others voiced their support for a postponement of debate on the amendment bill until March 2026.
Clarify rules of urgency
Popular Democratic Movement (PDM) MP Inna Hengari criticised the bill’s classification as urgent, saying it amounted to an abuse of Rule 193, which governs such motions.
“We have just received a few pieces of paper before us, but even after going through them, it is clear that what this bill seeks to do is to amend existing legislation. Therefore, honourable Speaker, I do not believe that this bill qualifies as an urgent bill,” she said.
Hengari called on the presiding officer to clarify how the urgency was determined, warning that motions were being introduced without notice, leaving MPs unsure of what they were debating.
In defence of the bill, deputy defence minister Charles Mubita said the amendment was both essential and urgent.
“There is one key aspect overlooked. What makes this bill more urgent than others? It is simply because this bill calls for transformation. It seeks to transform an existing instrument of government and ensure proper governance of the oil and petroleum industry,” he said.
“Governance and transformation, for me, those two words justify why this bill should be considered not only important but also urgent,” Mubita added.
[email protected]
Comments
Namibian Sun
No comments have been left on this article