Gabriel Ogunjobi –
The 8th Senate is about to make history in record time again by signing into laws three high-profile Petroleum Industry Bills viz; Petroleum Industry Fiscal Framework Bill; Petroleum Host Community Bill and Petroleum Industry Administration Bill.
At its 3-day public hearing which commenced on Monday, 3rd June, the Senate President made known crucial reasons why the Senate insists o passing the bills in tantrum to its past promises of setting in motion an agenda for the comprehensive reform of the Nigerian oil and gas industry during this legislative tenure.
“Our reform agenda is driven by the need to overhaul a system that has led to corruption being endemic in the petroleum industry”, Saraki pointed out.
“We are also motivated by the desire to usher in an internationalised framework that allows Nigeria to compete globally in terms of this industry”, he buttressed.
The Senate President hinted on myriads of advantages these bills would avail after their passages upon the ongoing deliberations.
“This would lead to the development of the local market; & the efficient use of this depleting resource, the ebb and flow of which have been so indelibly tied to the economy of the country. It is high time we stabilised the system, & to stabilise it for good.”
The Senate President, Dr. Abubakar Bukola Saraki also stated that the Senate will commence the process on the Petroleum Revenue Management Bill, which would reshape how we utilise the resources we earn from oil and gas.
On the Petroleum Industry Administration Bill, the Senate President established that the objective of the bill is to transform the administration of the upstream, midstream and downstream sectors of the Nigerian petroleum industry.
“Firstly, the Bill creates a framework that will free up acreages that are not being developed by current license and lease holders, thereby creating opportunities for new investors. This will bring substantial new investment to our oil and gas industry.”
“Secondly, it ensures effective management of the environment by petroleum operators and administrators.”
“Thirdly, it provides a framework to unleash midstream activities which will open up the market for the supply of gas and other downstream products, for economic growth.”
”Above all, I believe the most important feature of this Bill is that it provides much needed legal backing for the deregulation of our downstream petroleum sector”, he mentioned.
Although the existing fiscal framework for the petroleum industry is outdated but the Petroleum Industry Fiscal Bill, also aims to fix the anomalies, especially with regard to royalty and tax regimes.”
“For instance, billions of dollars have been lost through non-invocation of provisions in subsisting laws, at those times when crude oil price crosses certain thresholds.”
”The Bill will fix this as well as remove difficulties and uncertainties surrounding our tax assessment and collection system.”
“Perhaps the most critical objective of the Petroleum Industry Fiscal Bill is that it will enhance our international competitiveness and make Nigeria a choice destination for oil and gas investors.”
On the Petroleum Host and Impacted Communities Bill, Saraki described the bill as pan-Nigeria one that will cater for communities that are hosts to upstream assets, as well as significant midstream and downstream assets and infrastructure.
At the end of his address, Saraki encouraged the civil society organization and other stakeholders the outcome of the public hearing is very important to the nation’s economy and to the livelihood of all Nigerians as well as the interests of investors.”
“We have the task of delivering these Bills which, together, will enhance the growth of our oil and gas industry, modernise our fiscal system and enhance competitiveness, while creating harmony for all stakeholders.”
“It is our expectation that, with your active participation, we will have Bills that truly reflect the aspirations of Nigerians. We have an opportunity to show that the momentous passage of the PIGB was by no means a one-off”, Saraki concluded.
The public hearing organised by the Senate Committee on the Downstream Petroleum Sector also had in attendance Senators Victor Umeh, Isa Misau,
Gershom Bassey (Vice Chairman Senate Committee on Petroleum Upstream), Tayo Alasoadura (Chairman Senate Committee on Petroleum Upstream), Kabir Marafa (Chairman Senate Committee on Petroleum Downstream), Senate President, Dr. Abubakar Bukola Saraki among host of others.
Host Communities from the Niger Delta Region, Royal Fathers, Trade Unions, CSOs, MDAs, Representatives of Government Agencies were also part of the deliberations.
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