By Anayo Ezugwu

TO ensure transparency in the oil industry in Nigeria, experts in the sector 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 roundtable dialogue organised by Centre for Financial Journalism, CFJ, and Facility for Oil Sector Transparency, FOSTER, in Lagos, on Wednesday, May 30, which attracted stakeholders from the oil and gas industry, the media and non-governmental organizations. The stakeholders also urged the presidency to ensure that the Petroleum Industry Governance Bill, PIGB, which was passed by the National Assembly recently becomes law.

The other components of the Petroleum Industry Bill are Petroleum Industry Fiscal Bill, PIFB; Petroleum Industry Host Community Bill, PIHB; and Petroleum Industry Administrative Bill, PIAB. 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.

The stakeholders noted with dissatisfaction the long delay in the passage of these crucial bills, stating that this has so far deprived the country enormous potential for the growth of the sector.

Israel Aye, senior partner, Primera Africa Legal and industry expert, said Nigeria as at present does not have an oil-driven or oil-powered economy. He said what the country has is an extractive industry that is unfortunately based on vertical operations that cost humongous amount of financial resource. He regretted that the government failed to pass PIB in to law in the last 17 years. “What kind of country would spend 17 years trying to make a law that underpin the basis of the economy?” he asked.

On his part, Leonard Ugbajah, lawyer and resident representative of CUTS International, called on government to take the entire PIB seriously and ensure the passage of the various aspects of the bill expeditiously. In this regard, he said government should continue the paradigm shift in setting the fiscal framework and not just the governance or administrative framework.

He stated that the PIGB would ensure local participation in the petroleum economy and manage transition from the current regime. According to him, the bill would also ensure a robust manpower strategy and deliver the reforms as anticipated in the various bills; ensure petroleum policy continuity to make it fit into the expectations of Nigerians.

“All stakeholders, including the government, the National Assembly, inter-governmental organizations, the non-governmental and civil society organizations, even the international oil companies and international NGOs are to take critical look at various aspects of the PIGB before it is finally signed into law,” he said.

Goddy Ikeh, veteran journalist and former deputy editor-in-chief, News Agency of Nigeria, NAN, urged journalists, particularly financial and energy correspondents to enlighten and educate Nigerians mostly those in government positions on the need for PIGB. He said journalists must make deliberate efforts to increase the awareness of PIGB through their reportage.

He also enjoined them to update themselves with latest development not only on the PIGB but more on oil and gas industry locally and globally in their reportage and analysis. “You should regularly upgrade your knowledge and skills so that you can report the oil and gas industry effectively,” Ikeh 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.