By Anayo Ezugwu

Experts in the oil and gas industry in Nigeria have called on the federal government to facilitate the passage of the Petroleum Industry Bill, PIB. The experts said only the passage of the bill would end mismanagement of resources, reposition and attract new investments into the sector.

The call was made at a stakeholders’ forum organised by the Lagos Chamber of Commerce and Industry, LCCI, and the Facility for Oil Sector Transparency, FOSTER, on PIB in Lagos. Babatunde Ruwase, president, LCCI, said government should not be oblivious of the rapidly evolving nature of dynamics in the global oil and gas industry.

Ruwase expressed concern that in the face of rapidly evolving competition in the global oil and gas market, and the increasing challenges, the uncertainty around PIB continues to undermine the confidence of investors in the sector. “It is of interest to note that several oil producing and service companies have left the country on account of challenges like insecurity and uncertain investment climate.

“We are aware of the divergent views among stakeholders on the potential impacts of the PIB on operators, host communities, government, etc. The importance of passing the PIB is underscored by the fact that the oil and gas industry is very strategic to the economy of Nigeria.

“The industry currently accounts for about 80 percent of the government revenue and about 90 percent of foreign exchange earnings. Today, that revenue is facing a serious risk of shortfall from illegal bunkering, declining demand from buyers, stalled investments in the oil and gas sector and emerging technology in renewable energy,” he said.

In his opening remarks, Michael Uzoigwe, representative of FOSTER, said the agency interventions are having a significant impact in promoting reform and transparency in the management of Nigeria’s natural resources. He said FOSTER initiatives would continue to adapt and respond to the dynamic external context in Nigeria.

“This will build on FOSTER’s early achievements to support the move towards an oil sector that is more transparent, accountable and efficient. More broadly, FOSTER has provided valuable insights and lessons to help create a better understanding of how the international community can engage in efforts to promote reform in the extractive industries sector in challenging contexts,” he said.

Adeoye Adefulu, partner, Odujinrin & Adefulu Associates and member Senate technical committee on PIB, said the PIGB is meant to address institutional framework of the industry. He said the present standpoint in the industry would not attract the needed investments.

He said the National Assembly decided to divide the PIB into four parts for easy passage and to end the bottleneck associated with the bill. The four parts include: Petroleum Industry Governance Bill, PIGB; Petroleum Industry Fiscal Bill, PIFB; Petroleum Industry Host Community Bill, PIHB; and Petroleum Industry Administrative Bill, PIAB.

“The principle of PIGB is to ensure separation of powers. The PIFB will ensure progressive framework that encourage sustained investments, growth and revenue to government; serve the socioeconomic needs of all stakeholders; and clarify legislative aspects of the fiscal regime from the negotiable aspects of contractual obligations.

“On the other hand, PIHB will ensure shared prosperity and sustainable development of petroleum host communities; provide direct economic benefits to host communities; and assure inclusiveness, enhance peaceful co-existence and harmonious relationship. While PIAB will enhance efficient, effective and sustainable development of the sector; encourage and facilitate local and foreign investment; promote transparency and accountability; promote liberalisation of the downstream sector; and ensure best practices in petroleum operations,” he said.

– Oct. 1, 2018 @ 12:29 GMT |