Strategic Reforms and Revenue Growth Balua Koroma’s Legacy at the Petroleum Regulatory Agency

It has pleased His Excellency the President Dr. Julius Maada Bio to extend the appointment of Brima Baluwa Koroma as the Executive Chairman of the Petroleum Regulatory Agency (PRA). This extension comes after Koroma’s dedicated six-year tenure, during which he has transformed and effectively regulated the once-challenging downstream petroleum sector, introducing vital reforms that have revitalized the agency.

Despite Sierra Leone’s status as a net importing country for petroleum products, Koroma’s leadership has infused the agency with nationalistic viability, significantly increasing its contribution to the country’s GDP.

When Brima Baluwa Koroma took on the role of Executive Chairman, he faced a sector marked by a low appetite for investment. His strategic, transformative initiatives and in-depth industry knowledge allowed him to navigate these challenges effectively, opening up the sector and making it more attractive to both local and international investors. This revitalization has played a crucial role in curbing energy poverty, as flexible regulation has led to an influx of investments into the country.

Under Koroma’s stewardship, the sector has seen a significant increase in the number of Oil Marketing Companies (OMCs). Previously dominated by a few players such as National Petroleum, Total, and Leon Oil Marketing Companies, the industry now boasts new entrants like Aminata and Sons, Malador Associates, and All Petroleum Products. This diversification has enhanced competition and service delivery in the sector.

The country has also expanded its infrastructure, now boasting two operational petroleum jetties. This development has streamlined the berthing and offloading processes for larger vessels, facilitating smoother logistics and operations within the sector.

From just a handful of gas stations in operation in 2018, the number has soared to over 300 nationwide. This expansion can be attributed to the effective regulatory framework instituted by Koroma’s administration. The proliferation of gas stations has notably reduced incidents of hoarding and shortages of petroleum products, even in remote areas, ensuring consistent access for all citizens.

Koroma’s leadership has led to a marked increase in compliance with petroleum laws across the country. Understanding the hazardous nature of petroleum products, he and his team have prioritized safety and standards at gas stations. A strict adherence policy ensures that every new station is thoroughly scrutinized to guarantee it poses no threat to public health or environmental safety.

The agency has experienced remarkable financial growth, transforming from a stagnated revenue figure of 473 billion Leones in 2018 to a trillion-Leone entity today. This transformation has occurred without additional taxation, establishing the agency as a key source of income for the government and enhancing its ability to deliver essential services to the people of Sierra Leone.

In the past, the agency relied on OMCs for timely information on petroleum pricing, which was often delayed. Recognizing the need for accurate, real-time data, Brima Baluwa Koroma ensured that the agency subscribed to PLATTS, a global platform that monitors daily operations and prices of petroleum products worldwide. This subscription has empowered the agency with up-to-date information, enabling it to respond effectively to fluctuations in global refinery prices.

One of the critical obstacles to the sector’s growth was the outdated pricing formula, which was riddled with bottlenecks. Under Koroma’s leadership, a successful review of this formula was initiated, resulting in a more transparent and accommodating pricing structure for all sector players. The implementation of this new pricing formula has led to a consecutive drop in pump prices, benefiting consumers across the country.

A significant reform that the agency has sought is the transition from the Petroleum Regulatory Agency (PRA) to the National Petroleum Authority (NPRA). Koroma has been a strong advocate for this change, which would empower the government not only to rely on taxes but also to participate actively in the value chain from importation to distribution. This seamless transition, championed by someone with extensive sector knowledge, aims to address shocks in the market effectively.

The transformation to an authority, along with five additional regulatory reforms, is designed to enhance service delivery for the public, improve reporting efficiency, boost government revenues, expand the industry, and ensure greater transparency and accountability in the downstream sector.

Given Brima Baluwa Koroma’s extensive achievements and the positive impact of his reforms, President Bio’s decision to extend his appointment is both timely and strategic. As he embarks on this new phase of his leadership, the expectation is that he will complete the initiatives he has started, further solidifying his legacy as one of the most successful chairpersons in the agency’s history.