The senate yesterday passed the Petroleum Industry Bill (PIB), but not without fierce arguments.
The bill has been in the works since the tenure of former President Olusegun Obasanjo who led Nigeria between 1999 and 2007 but successive sessions of the national assembly failed to pass it.
But the PIB passed third reading after the chairman of the joint committee petroleum (upstream and downstream) and gas, Mr. Mohammed Sabo, presented a report and its clauses were put to voice vote.
While presenting the report, Sabo said the legislation is aimed at “promoting transparency, good governance and accountability in the oil and gas sector.”
The chairman said the committee recommended that 30 per cent of Nigeria National Petroleum Corporation (NNPC) profit from oil and gas should be used to fund exploration of frontier basins.
“The various obsolete laws currently in operation in the country have been updated and consolidated in this chapter to meet global competitiveness and best practices,” he said.
“A total of 355 amendments were recommended to this chapter while others were retained.”
During the clause-by-clause consideration of the bill in the “committee of the whole”, the percentage that should be allocated to the host communities caused a division among the senators.
At the public hearing on the bill, representatives of the host communities demanded that they be allocated 10 percent.
Although five per cent was proposed, the joint committee recommended three per cent after a meeting of the senators with the minister of state for petroleum resources, Mr. Timipre Sylva and the managing director of NNPC, Mr. Mele Kyari.
Three percent was accepted as what is due to host communities, Thompson Sekibo, senator representing Rivers north-east, called for a “division” to challenge a ruling of Senate President Ahmad Lawan.
While some senators spoke in favour of the division, others kicked against.
The senate leader, Mr. Abdullahi Yahaya, while describing it as a “bad precedent”, said his “heart bleeds” over Sekibo’s motion.
Yahaya pleaded with the Rivers lawmaker to withdraw his motion and Sekibo did.
Also speaking, the senator representing Delta South, Mr. James Manager, said five per cent was not too much for the host communities.
The bill, which has five parts, eight schedules and 319 clauses, was eventually passed.
With the passage of the PIB by both chambers of the national assembly, it is expected that a joint committee would be constituted to harmonise positions on the bill before it is sent to President Muhammadu Buhari for assent.
Reacting to the development, the managing director of an indigenous oil firm, Vhelbherg, Mr. Bank-Anthony Okoroafor, said the passage of the PIB and the expected assent by the President would help to bring the country’s oil and gas industry back on track.
Okoroafor, who is a former chairman of Petroleum Technology Association of Nigeria, said the passage of the bill would improve investor confidence as there would be clarity on the fiscal terms of the industry.
“It brings confidence and stability; so, it is a move in the right direction. I say well done to the Senate and House of Representatives for this giant step,” he added.
The national operations controller, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Mike Osatuyi, said the passage of the PIB into law would mark the beginning of the repositioning of the oil and gas industry.
“If the President assents to it, then that is the beginning of the reform that we have been expecting in the oil and gas industry. It is the beginning of deregulation in the downstream sector,” he said.
He said the passage of the PIB would allow market forces to determine of petrol prices and curb smuggling of the product.
The outgoing director general, Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf, described the PIB as a major instrument of reform in the oil and gas sector, with a number of significant implications for the sector and the economy as a whole.
For his part, the national president, Petroleum Products Retail Outlets Owners Association of Nigeria, Mr. Billy Gillis-Harry, described the passage of the bill as a big blessing for Nigeria.
He said through the bill, a deregulated downstream oil sector would be achieved, adding that this would boost the fortunes of the country and improve the Nigerian economy.
However, the Pan Niger Delta Forum said it was not time for the oil bearing region to celebrate.
PANDEF’s spokesman, Mr. Ken Robinson, said the forum would like to take a look at the version of the PIB that was endorsed before responding to it.
Robinson added that it would be unnecessary to begin to celebrate when the President Muhammadu Buhari had yet to give his assent to the bill.
“We like to reserve our comment and see the version they passed, whether they accommodated the input made by host communities – those suffering the impact of oil exploration in the Niger Delta and not benefitting from the system.
“We will see whether the input made by the people is accommodated. It is not time to celebrate; if the National Assembly has passed it and Mr. President does not assent to it, then it remains with them,” he said.
