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Benefits Of Passed PIB To Nigerias Economy

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ABdullahi Mahmud Gaya

 

Hon Abdullahi Mahmud Gaya

Nigeria’s oil and gas industries is being governed by laws enacted more than 50 years ago which has extremely not conversant with the current oil and gas reality. For all these years the sectors only have about 28 Petroleum Acts and Regulations which overlapped in functions and responsibilities without comprehensive law for the administration of the oil and gas sector.

The most recent regulations and acts that governed Nation’s oil and gas are National Data Repository Regulations 2020 Petroleum (Drilling & Production) (Amendments), Regulations 2020 Deep Offshore And Inland Basin Production Sharing Contracts,
Petroleum (Drilling And Production) (Amendment) Regulations, 2019 and Flare Gas (Prevention of Waste & Pollution) Regulations 2018. President Muhammadu Buhari also signed into law, a Bill to amend the Deep Offshore (and Inland Basin Production Sharing Contract) Act [the PSC Act].

For 13 years, the passed Petroleum Industry Bill (PIB) have gone through three presidents and four legislative tenures without resulting in an overarching petroleum industry law. Even though In 2018, the House of Representatives passed a harmonised version of the PIGB almost a year After the Senate passed the bill. However, the Petroleum Industry Bill was rejected by President Muhammadu Buhari for “Legal and Constitutional reasons.

My piece will focus on the significance of the Petroleum Industry Bill (PIB) passage to the country economy and benefits to Nigeria. About two weeks ago both chambers of the National Assembly Passed long-awaited Petroleum Industry Bill after 13 years in the House.

It is a fact that Nigeria hosts the African second largest Petroleum reserve with proven oil reserves about 36.97 billion barrels of crude oil. As of 2020, Nigeria is the most concentrated the natural gas reserves in Africa. The country had more than 200.4 Trillion Standard Cubic Feet (TSCF). But in spite of this abundance Oil and Gas reserve but country only received 4 per cent ($3 billion) of $75 billion invested in the continent in 2019 making Nigeria to be overthrown by its smaller neighbour, Ghana, National Bureau of Statistics, NBS

Non passage of the Bill remain a major drag on the petroleum industry, which has significantly limiting country potential to attract both local and foreign capital at a time when many other countries in Africa’s are scrambling to exploit their oil and gas resource.

The global market is changing rapidly, exacerbating old threats and creating new ones. The world’s largest consumers have become top producers and top importers have begun to export. Future trends for the oil industry do not look too good because a number of developed countries have set ambitious targets for reduced greenhouse emissions.

According OPEC projection that by 2040 oil sector is going to be playing less and less a role in global energy usage. If the projection come true in the next 20 years from now the world’s dependence on oil would have reduced to 50 percent. Considering the future usefulness of petroleum resources in the near decades had increased level of uncertainty on oil demand call for great concern but the passing PIB would overhaul the sector that has not been operate optimally in line with global standards.

Going by OPEC projection likely petroleum would have no much value in the next 20 years due to new technologies, fossil fuel may be less attractive as projected but it is time for Nigeria to maximum benefit of it fossil fuel reserves through this reform before it fades away with new technologies, fossil fuel. it is to act fast in the repositioning of the oil and gas industries with desirable legislation that would strengthen transparency, accountability limiting economic loss for the gas and petroleum industries and the country.

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The Bill consists of Five Distinct chapters, with Miscellaneous Provisions comprising 319 clauses and 8 schedules. Most importantly, the PIB will create a sustainable investment climate, where business in the sector will flourish. The NNPC operation will be commercially oriented, which would bring much-needed dividends to Nigerians. NNPC will metamorphose into a Limited Liability Company. In the coming months, NNPC will play more vital role in the petroleum marketplace, just like other marketers in the downstream space. In meantime NNPC Limited initial shareholders will be open for the general public to invest. Then with regards to the fiscal regime, the laws will bring it in tandem with international best practices, to make the oil and gas industry in Nigeria much more competitive and attract the much-needed investments into the country. The initial shareholders are going to be the Ministry of Finance Incorporated and Ministry of Petroleum Incorporated.

On 3 percent for Host Community Development Fund, House of Representatives made efforts to return to the Senate to discuss the possibility of renegotiation to 5%. But by the time the members of the conference committee reached Red Chamber had already passed the report thereby foreclosing any chance of a review. Therefore, members of the conference committee of the House had to return and pass it. That is what House rules say. As we don’t want PIB to suffer the same fate that it had suffered in the past. Therefore House of Representatives adopted Conference Report on the Petroleum Industry Bill approving 3% as the financial provision for the Host Communities Fund is to align with the position of the Senate on the same matter.

The 3 percent should pay annually as a contribution to the Host Community Development Fund Operating Expenditure Of Oil Companies (OPEX). Another good aspect for communities component in the bill provides that each settlor must set up a development trust fund and appoint a Board of Trustee which must apply to the Corporate Affairs Commission (CAC) to register the trust as a Host Communities Development Trust.

Clause 236 of the bill gives the time frame for the registration of a trust fund for oil assets. For existing leases and existing designated facilities, the period for setting up the fund is within 12 months of the bill coming into effect. Existing prospective licenses must set up the Fund before application for the field development plan. And failure to comply with setting up of the trust fund in line with the Act, a holder risks revocation of the applicable license.

The 3% should be paid annually as a contribution to the host Community Development Fund Operating Expenditure of Oil Companies (OPEX). The bill provides that each settlor must set up a development trust fund and appoint a Board of Trustee which must apply to the Corporate Affairs Commission (CAC) to register the trust as a Host Communities Development Trust.

The quest for oil explorations in the North and other parts of the country have received a huge boost. Based on Section 9 of the PIB, at least 30% of the profit generated by the proposed Nigerian National Petroleum Company Limited will go to the exploration of oil in ‘frontier basins’. Although the proposed law doesn’t identify the frontier basins, a statement by the President in 2019 identified the frontier basins as Chad Basin, Gongola Basin, Anambra Basin, Sokoto Basin, Dahomey Basin, Bida Basin and Benue Trough.

The proposed law stipulates that the 30% profits from oil operations will be held in Escrow Account that process completing of transaction. Money, securities, funds, and other assets can all be held in escrow. In a situation where it is not being used, it would be returned to the treasury.

The main objective of 30% of Frontier exploration activities is to promote the exploration of petroleum resources in Nigeria for the benefit of the Nigerian people and promote sustainable development of the industry, ensure safe, efficient transportation and distribution of infrastructure, and transparency and accountability in the administration of petroleum resources in Nigeria.

If PIB assent by PMB will clear the concerns raised by investors and have greater clarity on the direction of the industry, especially with respect to the new fiscal rules and Nigeria’s oil and gas industry and Nigeria’s economy to witness an exponential growth soon. The bill also promotes the competitive and liberalized downstream sector of the petroleum industry as well as the development of fuel and chemical industries.

 

Hon Gaya, Writes in From the House of Representatives Abuja

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Opinion

Kano APC Crisis: An Open Letter to President Tinubu

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I hope this letter finds you well Your Excellency. As Nigeria stands at a critical crossroads, I write to you today as a concerned and dedicated member of the All Progressives Congress in Kano, compelled by the urgency of our nation’s challenges and aware of your unwavering determination to steer it unto the path of greatness.

But a united front is indispensable in achieving your grand plan for the nations success. Internal party crisis in my dear state, threatens the very foundation upon which your vision lies – unity – and this I write to you today, eager spark meaningful dialogue and constructive action on your part.

Mr. President, as the Commander-in-Chief of the Armed Forces and leader of our party, your urgent intervention is crucial to address the pressing issues at hand. If left unattended, it may escalate into a crisis that could have far-reaching and devastating consequences for the party, making it challenging to manage. Your timely action would help mitigate this risk and ensure the party’s stability.

In Kano, it is generally acknowledged that Dr. Abdullahi Umar Ganduje, former governor and current National Chairman, leads our party. Members have consistently shown loyalty to his leadership since day one.

You will also recall that Dr. Ganduje actively supported your presidential bid, demonstrating a pure, genuine and unmixed commitment to your cause during both the presidential primaries and general elections. However, some individuals now seek to drive a wedge between you and the Chairman, feeling threatened by his influential position as the National Chairman of our great party.

Mr President sir, It is imperative to hold the Deputy President of the Senate Barau Jibrin accountable for plunging the All Progressives Congress into an avoidable crisis since taking office. As a seasoned politician and senator representing Kano North since 2015, his actions have significant implications. Barau Jibrin’s leadership has sparked division within the party, necessitating urgent attention to prevent further escalation.

Due to the recent removal of Abdullahi Muhammad Gwarzo as Minister, the All Progressives Congress is facing an unprecedented crisis in Kano North, a stronghold of the party since 2015. This division, fueled by Deputy President of the Senate Barau Jibrin’s actions, threatens the party’s stability. As a leader, Mr. President, it’s crucial to address this issue sustainably.

Barau Jibrin’s political strategy and human relations have been questionable, yet his influence led to the sacking of a loyal minister, Gwarzo. This decision was disheartening, considering Gwarzo’s impressive track record as a generous, humble, and grassroots politician. The people of Kano are upset, and rightfully so.

It’s essential to recognize Barau Jibrin’s intentions. He’s only loyal to you, Mr. President, because of your current position. History shows he’ll turn against you once you’re no longer in office. His self-serving nature is evident in his interactions with grassroots politicians.

To pacify the people and resolve the ongoing crisis, reappointing Gwarzo is imperative. This move will demonstrate your commitment to loyalty and fairness. The APC’s future in Kano North depends on it.

Mr. President, to ensure the party is back on track, it is crucial to prioritize collaboration with loyalists and consider the input of key stakeholders in Kano. This means moving away from decision-making that caters to a single individual who claims control over Kano North. Instead, foster an inclusive approach that values diverse perspectives and promotes unity within the party.

By doing so, you’ll not only strengthen the party’s foundation but also demonstrate your commitment to fairness and representation. This approach will help prevent unnecessary conflicts and ensure that the party’s interests are truly served. It’s essential to recognize that the party’s success relies on collective efforts, not individual interests.

For your information Mr President, Barau’s electoral successes can be attributed to the popularity of the House of Representatives candidates from his Senatorial District. These individuals are widely admired and respected by their constituents. However, rather than leveraging his own strengths, Barau has consistently relied on the goodwill and reputation of these candidates to secure his own victories, essentially seeking shelter under their umbrella.

It’s not yet too late for the President to do the needful for the interest of Kano State and the party at large. With the weight of history and the hopes of a generation on your shoulders, I urge you to confront the harsh realities that threaten our collective progress.

Nabahani Yusuf Gogori writes from Gogori town in Bagwai

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Opinion

Unmasking Excellence : Idris Abdulkadir Zare’s (Jagora) Leadership Style

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By Abba Anwar

Without any doubt, Idris Abdulkadir Zare’s name rings bell in Kano politics, particularly, in his political zone, Kano South. It rings bell not because he is terrifying, but simply because, his name, alone, signifies examplary leadership, selfless service to humanity, genuine loyalty and un-arguable commitment for the survival of the party, All Progressives Congress (APC), in this context.

While he is not a seeker of any elective public office, or party position, as I study him and his political antecedents, he believes, supporting party leadership and followership is one of the surest ways of strengthening the party, against all odds. I kindly call my readers to go to Rogo and substantiate my submission.

Here is a lone Jagora (leader) who spends from his hard earned resources to support the party without thinking of getting anything from anybody, no matter how highly placed, that person could be. His magnanimous touches go beyond party lines. Go to Rogo and seek for more clarification.

If Kano APC is really serious about mending fences, gaining more grassroot support, bouncing back in pre, during and post 2027, people like Idi Zare must be on board. I never met this gentleman. In fact I don’t even know his face, anyway. I come from Dala local government, Kano Central. But I came to know about him for quite sometime now.

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He, unlike many of our politicians, made his fortunes outside government. But he spends stupendously in people’s welfare, needs and loyalty. One good thing about him, is, while engaging in such activities, he is not vying for any position. Meaning, this gentleman is acting the script of his good heart. He is indeed a morale booster from whatever standpoint you look at him.

This is somebody whose loyalty is not dangling. He supports what he believes in, with all his heart. By whatever standard, Zare is a Phoenix. And trains people to become that.

I caption this piece, as Unmasking Excellence… because, here is a strong party man, whose support and faith in the party and beyond, are more or less, left near lowest ebb. If we can have enough Zare’s replica from all our political zones, in Kano, regret and backwardness could be things of the past. No doubt about this!

I can also understand that, even among our APC strong men in the state, only those of them who are more loyal and sensitive to the welfare of the party members, are the ones that understand his (Zare) worth and work with him hand in hand, for the survival of the party, in the state and the nation in general.

Zare’s clear understanding of political cohesion as a recipe for good governance gives him more courage to see to the welfare and unassuming political engagement with the view to bring all politicians to state growth and development.

The issue goes beyond dishing out resources to people for massaging the economic hardship, he helps in perfecting people’s transportation network, via the provision of vehicles for their personal use. He recently distributed cars and motorbikes for his people. Not because he got a single Kobo from any government institution. He uses his hard earned money to do what he sincerely believes in.

He is also being disturbed by the economic hardship plaguing the society. Which makes hunger more visible than before. That makes him to be up and doing in cushioning the effect of this ugly experience. He distributes foodstuff on frequent basis. To help body and soul live together.

Zare Jagora is not any super human being, only that he believes in making people happy. While being interested in developing his people, without recourse to any ambition or expectations, he believes when man is developed, all other systems can work in harmony to each other.

If and only if, APC as a strong party in Kano, and the nation in general, is really interested in victory, strength and service to humanity, Zare’s legacy and immense contributions to humanity should not be downgraded to the bottom of the ladder.

Anwar was former Chief Press Secretary to the former Governor of Kano State, Dr Abdullahi Umar Ganduje and can be reached at fatimanbaba1@gmail.com

November 4th, 2024

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Opinion

Northern Nigeria’s Silence Amidst Rising Injustices: A Call for a Return to Principled Leadership

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The worsening security situation in Northern Nigeria is no longer merely a concern—it has become a full-blown crisis threatening the lives and liberties of millions. Kidnapping, once considered the work of hardened criminals, is now perceived as a lucrative trade. Even more disturbing is the encroachment of this practice into governance, with reports of state authorities detaining citizens under questionable circumstances, particularly young protesters. These developments raise difficult questions about the strength and integrity of leadership in Northern Nigeria and leave us wondering whether the region still has leaders who genuinely represent its people.

The recent detention of minors, allegedly in unhealthy conditions, illustrates this chilling trend. These young individuals were reportedly taken by the authorities while engaging in a protest to call for better governance. Their alleged crime? Waving a foreign flag, in this case, the Russian flag, which authorities deemed treasonous. They did so, perhaps naively, without recognizing the potential implications, yet the state treated them with severity, reportedly requiring a staggering N10 million per person as bail. In contrast, individuals in Southern Nigeria have raised foreign flags and voiced secessionist sentiments without facing equivalent punishments.

This discrepancy raises difficult questions about the consistency of the law and whether it is applied equally across the country. Why are Northern youth held to such strict standards while similar actions in other regions seem to be treated with leniency? Historically, the North was known for its stalwart leaders—individuals who stood up for the people, challenged the government when necessary, and never allowed the region to be compromised. Leaders like Sir Ahmadu Bello, the Sardauna of Sokoto, Alhaji Tafawa Balewa, and Malam Aminu Kano left a legacy of dignity, integrity, and advocacy for Northern interests. These figures prioritized the wellbeing of their people, standing up against exploitation and injusticeTheir voices resonated across Nigeria, leaving an indelible mark on the nation’s political landscape. Today, however, the lack of a unified voice from Northern leaders is disheartening. In the past, these leaders would not have hesitated to demand justice for the detained minors or to negotiate on behalf of their people. Now, the silence of Northern elites on issues like insecurity, youth incarceration, and poor governance has left a void. Instead of elders standing firmly to shield and protect the region’s youth, we are witnessing a tragic indifference that has left many young people feeling abandoned. This crisis of leadership in Northern Nigeria has had severe consequences. Kidnapping and banditry are ravaging communities, youth are disillusioned, and the voices of the people are ignored or, worse, suppressed.

The North is bleeding, and without intervention, the situation will continue to deteriorate. To the elders of the North, if indeed they still exist in spirit and purpose, it is time to rise. The North needs a collective, principled voice to stand against injustice and ensure that the region’s youth are protected and that their futures are not sacrificed to lawlessness or state oppression. The need for Northern Nigeria to reclaim its dignified, protective, and principled leadership has never been more urgent. It is time to break the silence.

Abubakar Ibrahim can be reach via:

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habuibrahim76@gmail.com
+2348098454956

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