PIB suffers setback as SGF’s office fails to transmit executive version to FEC

The executive version of the much awaited Petroleum Industry Reform Bill (PIRB) which should pave the way for needed investments and sanity in Nigeria’s oil industry has been stalled at the Cabinet Office, overseen by the office of the Secretary to the Government of the Federation (SGF) since January 2017 that the document was submitted there.

BusinessDay authoritatively gathered that the office of the Minister of State for Petroleum Resources prepared and submitted the PIRB document to the SGF’s office since January 4, but that it was stepped down by the suspended Secretary to the Government of the Federation, Babachir Lawal, who was in change then, citing “order from Above”.

The document is titled ‘A bill for an Act to provide for the establishment of a legal and regulatory framework for the petroleum Industry in Nigeria and for other related matters’.

The memo was submitted to the cabinet office alongside those for the National Gas Policy and National Oil Policy, all of which form part of the seven big wins project – a new road map for the oil and gas sector, launched last October by President Buhari.

The documents were prepared by the Ibe Kachikwu, Minister of State for Petroleum Resources, on behalf of President Buhari, who also doubles as Nigeria’s Petroleum Minister.

BusinessDay was told that the President approved the documents and directed that they should be sent to Council for approval.

As is the tradition with such crucial memos raised by cabinet members, the  three documents  ought to have gone to FEC since January for the usual approval. The document would then be transmitted to the National Assembly for harmonisation with their own versions, for passage.

The concern is however that if the PIRB is not presented to FEC by the next Council meeting on Wednesday, the bill will likely be passed by the National Assembly without executive input.

Unfortunately, while the SGF office continues to sit on the executive version, the   Senate has already debated the Petroleum Industry Governance Bill (PIGB), a key component of the PIRB, and is ready to pass the document between May 16 and 17.

“It will be a disaster and shame for the executive and the country, if the National Assembly goes ahead to pass the PIGB without the executive input,” a top president source, who spoke on the matter told BusinessDay anonymously.

“And nobody is saying to us why that document cannot go to FEC,” the source further stated.

The Cabinet Office managed by the SGF is where all FEC memos are submitted for approval before they are listed to be presented to council meetings for consideration, approval and further actions.

BusinessDay was told that since January 4 that the memo covering those three documents was sent to the SGF’s office, they have not been presented to Council, despite the president’s approval and several attempts to have it introduced.

“I am also worried that a document approved by Mr President, which he cleared  to go to FEC, can be stalled at the office of the SGF and Chief of Staff, who of course, I am assuming is the ‘order from above the SGF if referring to. That says a lot,” the source further said.

When asked about the PIB document which was submitted to the FEC secretariat and why it has not been brought to council, Bolaji Adebiyi the Director information declined details but simply said a lot of documents are brought in the cabinet office and that they are classified such that he cannot speak on them.

When further asked if there was anyone that could speak about it, Adebiyi  said that it is a classified office and “they don’t speak like that.”

The PIRB has been split into different components to ease passage, considering the huge setback it had encountered for several years

They include, the Petroleum Industry Fiscal Bill (PIFB) which has passed the first hearing at the Senate, the Petroleum Industry Governance Bill (PIGB), which is due for passage and the Host Community Bill.

Tayo Alasoadura, Chairman, Senate Committee on Petroleum Resources (Upstream), said recently that the aspects of the Bill that would take care of the host communities and the fiscal aspect of the industry, would be passed before the end of the year.

“We ought to have passed the PIGB, but because of the demise of Senator Isiaka Adeleke, we decided to hold a special session in his honour. That was why we could not pass it. But we have already agreed that the bill will be considered and passed between May 16 and 17,” he was quoted to have said at a recent meeting.

The PIB has suffered repeated setbacks due largely to disagreements among stakeholders.

According to the Nigeria a Extractive Industries Transparency Initiative (NEITI),  the disagreements have centered mostly around the regulatory framework, including the power of the minister,  ownership and control of the resources, host community benefits, environmental concerns, appropriate  fiscal regime, among others.

NEITI figures further indicate that the failure of Nigeria to pass an over-arching law for the petroleum sector, after repeated attempts, continues to accumulate huge costs for the country, estimated at more than $200bn.

 

Onyinye Nwachukwu & Elizabeth Archibong, Abuja