Archaic rules compounded by the delayed Petroleum Industry Governance Bill (PIGB) part of which had been passed by the eighth National Assembly, but not yet signed into law, have been identified as a factor slowing investment in the Nigerian oil and gas sector, especially as it relates to refineries.
President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Ndukaku Ohaeri, stated this when he led members of the Central Working Committee (CWC) of the association on a visit to Mele Kyari, Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), in Abuja. Ohaeri believes that pending the PIGB, the Public Private Partnership (PPP) model that turned the Nigerian Liquefied Natural Gas (NLNG) around, would help in reviving the nation’s ailing refineries.
“We acknowledge the huge challenge facing the refineries and note the efforts the government is making to rehabilitate them for optimal delivery.
“We had welcomed the initiative of bringing in investors to revamp the refineries in the area of funding and expertise. Though this did not work out as most investors are afraid of investing in a sector that is yet to come up with reforms to its archaic guiding rules, we do hope that the new method employed where NNPC will source for the funding of the rehabilitation internally and work with the Original Equipment Manufacturers (OEM) will make a huge success,” said Ohaeri.
He noted that having identified the advantages that will follow the PIGB, there was the need for the new NNPC management to join in putting pressure on the National Assembly and the government to resolve issues delaying the expected new law.
Ohaeri explained that with the uncertainty surrounding bill, investors were wary of long term investment in the industry thereby affecting the creation and retention of jobs which is one of the cardinal principle of the President Muhammadu Buhari-led administration.
“We call on you to join the National Assembly and the Federal Government to remove the grey areas hindering the smooth passing and signing into law of all the parts of the Petroleum Industry Bill (PIB) as this we believe, will restore investors’ confidence in the country’s oil and gas sector.”
“The signing and implementation of the bill, he noted, will revolutionalise the industry such as the petroleum industry administration bill, the petroleum industry fiscal bill and the petroleum host and impacted community bill should be vigorously looked into and passed into law in order to restore investors’ confidence.”
The labour leader commended the NNPC management for the roles it has played in channeling the human capital potential of the Nigerian worker towards optimising productivity and economic growth of a nationhood, of which, according him, officers of the two unions in the oil and gas (PENGASSAN and NUPENG) have been beneficiaries.
Kyari, who received the delegation, assured the CWC of industrial harmony and promised to work closely with leaders of the unions in the sector for the overall good of the country.
JOSHUA BASSEY
