• Monday, July 22, 2024
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Buhari tells FEC that Nigeria lost $50b on delayed petroleum law

Buhari tells FEC that Nigeria lost $50b on delayed petroleum law


Nigeria lost an estimated $50b worth of investment in the petroleum sector. This is was due to uncertainty over the 20 years’ non-passage of the Petroleum Industry Bill (PIB), lack of progress, and stagnation in the petroleum industry.

President Muhammadu Buhari stated this on Wednesday at a ceremony on passage of the PIA, which preceded the Federal Executive Council (FEC) meeting, at the Presidential Villa, Abuja

The stagnation, he said affected the growth of the economy, citing a lack of political will on the part of past administrations to actualize the needed transformation.

He, therefore, declared that assent of the Petroleum Industry Bill on August 16, 2021, marks the end of decades of uncertainty and under-investment in the petroleum industry.

According to him, “We are all aware that past Administrations have identified the need to further align the industry for global competitiveness, but there was lack of political will to actualize this needed transformation.

“This lack of progress has stagnated the growth of the industry and the prosperity of our economy. In the past ten years, Nigeria has lost an estimated US$50billion worth of investments due to uncertainty created by the non-passage of the PIB.
“This administration believes that the timely passage of the Petroleum Industry Bill will help our country attract investments across the oil and gas value chain.
“In view of the value our Nation and investors will derive from a stable fiscal framework for the oil and gas industry, our Administration has found it necessary to work with the two chambers of the National Assembly to ensure the passage of the PIB, ’’ he said.

Read also: Five major changes expected as Buhari signs PIB

President Buhari noted that the signing of the bill was part of the administration’s commitment to building a competitive and resilient petroleum industry that will attract investment, improve our revenue base, create jobs, and support our economic diversification agenda.
The President said as a “nation that depends on oil resources for the development of other sectors, Nigeria runs a Petroleum Industry that is governed largely by laws enacted over 50 years ago such as the principal legislation; the Petroleum Act of 1969 and other obsolete legislations.’’

He said the Presidential assent of the bill to “Petroleum Industry Act 2021” marked the beginning of the journey towards a competitive and resilient petroleum industry that will attract investments to support the nation’s Economic Recovery and Growth Plan.
“The “Petroleum Industry Act 2021” creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation.

“The Act also provides for a direct benefit framework that will enable the sustainable development of Host Communities. I appeal to the host communities to look carefully at the contents of the Bill which in the implementation will bring real and lasting benefits to them.
“Furthermore, the Act provides for a deliberate end to gas flaring which would facilitate the attainment of Nigeria’s Nationally Determined Contributions of the Paris Agreement through a funding mechanism to support gas flare out project in host communities,’’ he added.

President Buhari said the administration believes that the timely passage of the Petroleum Industry Bill will help our country attract investments across the oil and gas value chain.

While directing the immediate implementation of the framework for the Petroleum Industry Act (PIA), he urged all relevant stakeholders to comply and reposition for full activation within 12 months.

The President said the Minister of State for Petroleum Resources, Timipre Sylva, will head the implementation team, urging all Ministries, Departments, and Agencies (MDA) to adjust to the transition, designed to reposition the economy.

“To consolidate the commitment of this administration to delivering the value proposition of this law, I have approved an implementation framework commencing immediately to ensure the industry envisaged in the new law begins to take shape.
“The implementation process to be headed by the Hon Minister of State, Petroleum Resources is hereby tasked with the completion of the implementation of this act within 12 months. I am therefore directing all relevant Ministries, Departments, and Agencies of government to fully cooperate in ensuring the successful and timely implementation of this law,’’ he said.

This is just as the Federal Executive Council FEC on Wednesday approved four memoranda from civil aviation, including a memo for the construction of Wachakal Airport in Yobe State and at the contract sum of N6,284,065,056.

Aviation Minister, Hadi Sirika, briefing after the FEC meeting, said the government found the airport and many others that are coming across the country useful.
He said the “Federal Executive Council in its wisdom had allowed this to proceed and many more are coming in the pipeline. And these will generally answer the question as to the growth and development of civilization and also to show preparedness for emergencies and military operations and other security agencies. This is similar to the one that is being built in Monguno and several other sites like I said earlier.”

The council also approved post-consultancy services for the construction of the same airport, Wachakal Air stripe which is very close to Nguru in Yobe state, to Kafe Engineering at the sum of N219,782,500 only, inclusive of the Value Added Tax.

“The third memorandum that was taken his approval for the supply and maintenance of eight units of airport rescue and firefighting vehicle including spare parts and training. And this was given to Messers Gulf of Africa International Limited. the exclusive representatives of the OEM and the OEMs are Emirate firefighting equipment factories, this is in the sum of N9,535,132,500 even. This also will include seven and a half percent and delivery period for this procurement is 12 months.”
He disclosed that the Firefighting equipment “is a very, very essential safety item that has the capability or capacity if not in place, to cause the airport to be shut down. It is a necessity. We cannot open the gates of our airports without having this equipment, the firefighting vehicles and ours have already are outdated and in some airports degraded.

“So by this procurement, it will sure up our airports especially our international airports and this is an ongoing procurement.

The contract for the deployment of sniffer dogs Cannine in airports in Lagos and Abuja was also approved

“So the total contract sum for this procurement is N658,762,783.36 which includes seven and a half percent VAT and has given to two companies that is Messers Dog Whispers and Cannine Limited which contract sum was N365,854,376.63 and the second company is Messrs Worldwide Cannine Limited. The contract sum is reviewed down to N292,908,300 36.63.

“Now these Dogs they’ll be doing among other things, detection of bombs, detection drugs, currency, prohibited items, explosives, etc, which is also a requirement of International Civil Aviation organisation, standard recommended practices, and also our own local laws in Nigeria.

So you will see very soon that airports will be wearing new looks. Already in accordance with the Act establishing FAAN, the President has approved long ago that the aviation security would bear arms and get ready for emergencies in the airport” he said.