President of the Senate, Ahmad Lawan, has assured that the passage and assent to the much-awaited Petroleum Industry Bill (PIB) would come before May 29, 2021.
Lawan gave the assurance on Monday at the Joint Committee on Downstream Petroleum Sector, Petroleum Resources (Upstream) and Gas during a two-day public hearing on PIB at the National Assembly complex in Abuja.
This is coming 20years after Africa’s largest oil producer struggled to complete the legislation which aims to increase transparency and stimulate growth in the country’s oil industry.
In October 2020, the bill was passed into second reading at the upper chamber after debate on its general principles.
The bill was subsequently referred to the committees on Petroleum Upstream, Downstream, and Gas to come up with its reports within eight weeks.
In his opening remarks at the public hearing, Lawan reiterated that the ninth Senate was not a rubber stamp assembly where such critical bill would be passed without meticulousness and thoroughness on the bill.
He said they should be able to pass the PIB even though PIB had defiled all odds, adding that this time around, they had resolved to pass it.
While assuring of a quick passage of the bill, the Senate President called on all stakeholders to play their roles in making it a reality.
He observed that inadequate consultation with the relevant stakeholders had been the reason the piece of legislation had not been passed.
In the bill, 2.5 percent was provided for Host Communities Development Trust Funds, but HOSTCOM was insisting for 10 percent, which was expected to be contributed by major oil companies.
In his presentation, Benjamin Tamaranebi, the National President of the Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) said
there was no going back on the 10 percent for the Host Communities Development Trust Funds.
Tamaranebi added that the host communities also stand on 10 percent equity shareholding, stressing that it would be very absurd and illogical to deprive HostCom the right to equity shareholding in both the establishment of the NNPC Limited, the Commission, the Authority and the Boards after 60 years of marginalization and bearing the brunt of the negative impacts of exploration and exploitation.
He noted that in the case of the Gas flare penalty funds, the host communities, who were the direct recipient of the negative
effects would be the ones to receive the Gas flare penalty.
The HOSTCOM national president further asserted that the federal government was not the owner of the oil and gas produced from the producing states and the host communities.
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari lamented that no significant investment had taken place in the industry since 2000.
Kyari expressed optimism that passing the bill would make the corporation more competitive.
He said what PIB would do for NNPC as a country was to bring it back into reality as a country to ensure the local economy was developed and prosperity brought back to the country.
The NNPC boss stressed that the piece of legislation had failed on three occasions, adding that “any time you have such situations, it discourages investors.”
“The oil industry does not condone uncertainty. No significant investment since 2000. So passing the bill will make us more competitive. What PIB will do for us as a country is to bring us back into reality as a country to ensure the local economy is developed and prosperity is brought back to this country.
“From the year 2015, we haven’t seen any significant development in this industry and the reason is very clear. This piece of legislation has failed on three occasions. Any time you have such situations, it discourages investors.
“Companies are being stagnated and stretched. Because the Industry is transiting, people are looking for options and alternative. This industry drives the rest of the industries. We are the only industry banks can borrow $100 million,” Kyari stated.
Also in his brief remarks, Timipre Silver, the Minister of State for Petroleum, pointed out that Nigeria must get it right this time with the law, saying what was required was the focus and being resolute.
