Senate President Ahmad Lawan and Rt. Hon. Femi Gbajabiamila, Speaker of the House of Representatives Photo: Premium Times

Benefits of passage of Petroleum Industry Bill to Nigeria, investors ─Minister, Stakeholders

*With the passage of the PIB, more fund and investments would flow into the country, says Chief Timipre Sylva, Minister of State for Petroleum

*Passing the Petroleum Industry Bill lays the foundation for a stronger, efficient and attractive energy industry in Nigeria ─NJ Ayuk, Executive Chairman of African Energy Chamber

Gbenga Kayode | ConsumerConnect

Sequel to the required inputs of both the Executive and Legislative arms of the Nigerian Government, the National Assembly (NASS) has passed the country’s Petroleum Industry Bill (PIB).

Senate President Ahmed Lawan disclosed that the Senate passed the Petroleum Industry Bill during the plenary Thursday, July 1, 2021, after careful consideration of each of the 318 clauses contained in the vital document.

ConsumerConnect reports the PIB comprises a combination of 16 Nigerian petroleum laws which outline the framework to boost oil and gas output, and enhance the needed attractiveness of the sector for international investment.

The PIB, which was passed exactly 13 years after it was first presented to the National Assembly 2008, basically aims to modernise the entire petroleum industry and attract more investors into the significant sector in the country.

Though the PIB was first introduced to NASS 2008, President Muhammadu Buhari re-presented it to the current National Assembly for reconsideration September 28, 2020.

The Senate as the Upper Legislative House in the NASS, before passing the bill Thursday was said to have met behind closed doors with H.E. Chief Timipre Sylva, Honourable Minister of State for Petroleum, and Malam Mele Kolo Kyari, Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC).

The PIB seeks to introduce changes to the governance, administrative, regulatory, and fiscal framework of the Nigerian oil and gas industry towards ensuring transparency, strengthening the governing institutions, and attracting investment capital, among other objectives.

Senate President Lawan said the Senate expects President Buhari to sign the bill as soon as it is transmitted to his office in Abuja, FCT as the Red Chamber adjourned till July 6, 2021.

Likewise, the House of Representatives, which is the Lower House (Green Chamber) of NASS Thursday passed the long awaited PIB after considering and adopting the bill’s 318 clauses.

Rt. Hon. Femi Gbajabiamila, Speaker of the House of Representatives, stated that the House’s decision also came as the Senate started considering the bill after committee work earlier Thursday.

Nigerians should expect exponential investment growth in oil and gas industry ─Minister

In his immediate remarks on the passage of the bill, Chief Sylva Thursday outlined some of the benefits Nigerians should expect from the Petroleum Industry Bill.

H.E. Chief Timipre Sylva, Honourable Minister of State for Petroleum

Sylva, who appeared on a Channels TV programme, highlighted how Nigerians should expect exponential investment growth into the country through the oil and gas sector going forward.

The Minister of State for Petroleum assured Nigerians that President Muhammadu Buhari fully supports the Federal Legislature in the build-up efforts at passing the bill.

Sylva said: “For over 20 years now, investment into the oil and gas industry has been stunted due to the sector’s uncertainty.

“But with the passage of the PIB, more fund and investments would flow into Nigeria.

“In fact, Africa recorded $50 billion investment in oil and gas in the last few years, just $3 billion came into Nigeria, despite our comparative advantage.

According to the Minister, “Nigeria increased its oil reserve base from 22 billion to 37 billion barrels between 2002 and 2007.

“However, since 2007, when the law amendment started, our reserve has only increased by 500 million barrels. This shows how much money Nigeria is losing and the level of uncertainty by investors.”

He further stated: “Now that the PIB bill has been passed into law, investors in Nigeria and abroad will know exactly what to anticipate when they invest in the country.”

As regards the fuel subsidy regime in the oil and gas sector, Sylva restated the Federal Government’s plan to stop fuel subsidy payment, stressing that payments on fuel subsidy would end soon.

“The government cannot continue to pay trillions of dollars subsidising a single product majorly use by elites, it is not sustainable so definitely subsidy will go,” said he.

Passage of Nigeria’s PIB to dominate agenda at 2021 African Energy Week in South Africa ─African Energy Chamber

ConsumerConnect reports the African Energy Chamber has disclosed the benefits of the passage of Nigeria’s Petroleum Industry Bill will be top of the agenda at the 2021 African Energy Week (AEW).

The African Energy Chamber in a blog post to this publication Thursday evening stated that this year’s AEW, taking place November 9-12, 2021, in Cape Town, South Africa, represents the ideal platform to discuss post-Petroleum Industry Bill opportunities in Nigeria.

The group said by ensuring an enabling environment for investors backed by a transparent and strengthened regulatory framework, Nigeria’s PIB will present significant investment opportunities for both regional and international stakeholders.

According to African Energy Chamber, in the era when the global energy sector is particularly competitive for foreign capital, the passing of the PIB “serves to elevate Nigeria as an energy leader on the global stage and the upcoming African Energy Week (AEW) 2021 taking place in Cape Town on the 9th-12th of November will only enhance this trend.

NJ Ayuk, Executive Chairman of African Energy Chamber, said: “For 13 years, our oil and natural gas industry pushed and waited for this moment.

“Passing the Petroleum Industry Bill lays the foundation for a stronger, efficient and attractive energy industry in Nigeria.”

“What we must do, is make this legislation work for Nigerian companies and foreign companies in the energy sector.”

Ayuk also stated: “I believe that this Bill will make the Nigerian energy sector competitive again and you will see rig counts go up.”

He noted that “Nigeria will out-innovate, out-produce, and out-compete those who counted out or bet against its the oil and natural gas industry.

“We will showcase the opportunities at Africa Energy Week in Cape Town.”

The African Energy Chamber said by uniting both African global stakeholders in one exclusive networking event, AEW 2021 will be the place to explore post-PIB opportunities in Nigeria.

According to the Chamber, H.E. Chief Sylva has already confirmed his attendance at AEW 2021, and will lead a Nigerian delegation to AEW 2021, including executives from the NNPC and Department of Petroleum Resources (DPR).

The passing of the PIB represents an historic moment in Nigeria’s energy sector, and AEW 2021, representing the only Africa-focused energy event taking place in Africa in 2021, serves to promote and enhance the significant opportunities that will be sure to follow, said the group.

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