Africa
…appeals to host communities to carefully consider its contents
By Anthony Isibor
PRESIDENT Muhammadu Buhari has appealed to host communities to look carefully at the contents of the Petroleum Industry Act which just recently received his accent, adding that its implementation will be completed within 12 months.
While speaking on the passage of the PIA, on Wednesday, August 18, at the Federal Executive Council, FEC, meeting at the Villa, Abuja, Buhari said that the implementation of the Act will bring real and lasting benefits to them.
The assent of the bill “Marks the end of decades of uncertainty and under-investment in the petroleum industry, he said.
According to him, “The Presidential assent of the Petroleum industry bill on 16th August 2021 to ‘Petroleum Industry Act 2021’ marked the beginning of the journey towards a competitive and resilient petroleum industry that will attract investments to support our Economic Recovery and Growth Plan.
“The Petroleum Industry Act 2021 creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation.
“The Act also provides for a direct benefit framework that will enable the sustainable development of Host Communities. I appeal to the host communities to look carefully at the contents of the Bill which in the implementation will bring real and lasting benefits to them.
“Furthermore, the act provides for a deliberate end to gas flaring which would facilitate the attainment of Nigeria’s Nationally Determined Contributions of the Paris Agreement through a funding mechanism to support gas flare out project in host communities.
“Similarly, it acknowledges global energy transition and made necessary provisions for NNPC to invest in renewable energy.”
The president said the prolonged delay in the passage of the bill has stagnated the growth of the industry and the prosperity of the economy, leading to the loss of an estimated US$50 billion worth of investments in the past 10 years due to uncertainty created by its non-passage of the PIB.
“We are all aware that past administrations have identified the need to further align the industry for global competitiveness, but there was a lack of political will to actualize this needed transformation, he stated, adding that this informed “This administration’s commitment to building a competitive and resilient petroleum industry that will attract investment, improve our revenue base, create jobs, and support our economic diversification agenda.”
He Said: “This administration believes that the timely passage of the Petroleum Industry Bill will help our country attract investments across the oil and gas value chain.
“In view of the value our Nation and investors will derive from a stable fiscal framework for the oil and gas industry, our administration has found it necessary to work with the two Chambers of the National Assembly to ensure the passage of the PIB.
“To consolidate the commitment of this administration to delivering the value proposition of this law, I have approved an implementation framework commencing immediately to ensure the industry envisaged in the new law begins to take shape.
“As a Nation that depends on oil resources for the development of other sectors, Nigeria runs a Petroleum Industry is governed largely by laws enacted over 50 years ago such as the principal legislation; the Petroleum Act of 1969 and other obsolete legislations.”
President Buhari also added that the implementation of the act will be completed within 12 months, adding that the committee will be headed by the minister of state for Petroleum Resources.
“I am therefore directing all relevant Ministries, Departments, and Agencies of government to fully cooperate in ensuring the successful and timely implementation of this law,” he said.
Thanking all those who were instrumental to the achievement of the PIA 2021, Buhari commended “the leadership of the 9th Assembly for their continued pursuit of our national aspiration and demonstration of mutual harmony with the Executive in the pursuit of a patriotic outcome in the passage of the PIB.”
He also commended the entire team in the executive that worked tirelessly to ensure the delivery of this strategic legislation for our country and thank Nigerians and other industry stakeholders for their contributions and support in achieving this historic landmark.
Aug. 18, 2021 @ 16:48 GMT |
A.I
Tags: NNPC PIB President Muhammadu Buhari
