Time to pass PIB into law

The non-passage into law of the Petroleum Industry Bill (PIB)
has been blamed for so many problems in the oil and gas
sector of the economy. International Oil Companies (IOCs) and
some political interests in the country have been accused of
sabotaging the numerous efforts to get the bill passed by the
National Assembly.
On December 31, last year, the Trade Union Congress (TUC) in
Rivers State added its voice to others calling for the passage
of the bill into law. TUC held that since 2009 when the bill
was first introduced, no new Final Investment Decision (FID)
had been taken on any oil and gas project in the country. TUC
Chairman, Chika Onuegbu, pointed out that the falling price of
crude oil should serve as an impetus to the legislature to im­
mediately pass the bill, because the country has lost billions
of US dollars in oil and gas investment due to its non-
passage. Onuegbu disclosed that investors are adopting a wait
and see attitude and refraining from making any new
investment until the bill is passed. To TUC, the PIB represents
a great opportunity for Nigeria to lay a solid foundation for oil
and gas operations in the country and ensure that the nation’s
petroleum resources benefit Nigerians.
There is no doubt that the concerns of the TUC, like others
before them, are genuine and need to be given deserved
attention by all the stakeholders in the industry. The PIB,
when it becomes law, will among other things encourage
exploitation of oil and gas in the country, commercialise gov­
ernment’s interests in the industry, deregulate and liberalise
the downstream petroleum sector, optimise gas supplies to
the domestic gas market, reform the fiscal regime, ensure
openness and transparency in the industry as well as the
protection of oil-producing environment and the development
of local content.
Opposition to the passage of the bill is traceable to the fears
of oil majors about government’s increased control of the
industry through the role assigned to the Minister of Pe­
troleum Resources in the PIB, and the unfavourable new tax
regimes. The local opposition to the bill is also very potent.
The sharp division along sectional lines in the National As­
sembly, and the politicisation of the proposed petroleum law
is also contributing to the delay in its passage. Let all the
contentious sections of the bill be revisited with a view to
making them acceptable to all the stakeholders. It is high
time the controversy surrounding the bill was resolved once
and for all. The delay in its passage is stalling progress in the
oil and gas sector of the economy. This is a luxury the nation
can ill afford.
The PIB means well for the country’s oil and gas industry, in­
cluding the oil majors and the oil-producing communities.
Those opposing the passage of the bill, especially our
politicians, should jettison their narrow interests and consider
the bigger picture of the obvious benefits the bill will bring to
the country. Let the legislators be guided by patriotism and
the overall national interest, rather than sectional and personal
interests. Let them ensure speedy passage of the PIB.
Transparency of all operations in the oil and gas sector will
block leakages in the system such as corruption, inefficiency,
oil theft and other sharp practices. This will translate to more
revenue earnings for the government.
More local participation in the sector will mean more jobs for
Nigerians. The petroleum law will also ensure the protection of
the oil-producing environment and ensure that the inhabitants
of the area also benefit from the exploitation of minerals
found in their vicinity.
We, therefore, call on all the stakeholders to work in concert
to ensure that the PIB is passed into law by the current
National Assembly. Let them eschew the differences that have
worked against the passage of this vital bill that is expected
to revolutionise operations in the oil and sector. Let the PIB
be passed into law without any further delay by the Senator
David Mark-led National Assembly. On no account should the
bill be passed to the next National Assembly.