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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.

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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

Opinion

Uromi Killings, Barau’s Intervention and Responsible Representation

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By Abba Anwar

Before any note on the barbaric Uromi mob action, let me begin with prayer for The Almighty Allah to Bless and Forgive the gentle soul of Galadiman Kano, Alhaji Abbas Sanusi, the son of the late Emir of Kano and Grand Khalifa of Tijjaniyya, Sir Muhammadu Sanusi and the father of the Kano State Chairman of All Progressives Congress (APC), Abdullahi Abbas.

Whenever I sighted the late Galadiman Kano, my mind naturally recollects the face of his respected and revered father, our Tijjaniyya guide, beacon of hope, an epitome of greatness and scholarship, Sir Sanusi, whom I was privilege to visit in both Azare and Wudil, with my parents, when I was much younger, but not toddling.

We had a tradition back in the family, that the younger ones were included in such visits turn by turn. So I was included in two visits to Azare and two visits to Wudil. Where the blessed hands of Sir Sanusi were on my head full with prayers. Alhamdulillah.

ALLAH YA JIKAN GALADIMAN KANO, ALHAJI ABBAS SANUSI

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Coming down to the barbaric incident that affected legitimate hunters, in Uromi, Esan North East of Edo state, where 16 hunters were burned to death, an incident that went viral in both the traditional and the new media, the action was condemned across the nation.

Political leaders, governments and other humane elements were up and doing dismissing the anti-human development as condemnable and animalistic.

While I acknowledge and appreciate the concerns of many, I was personally moved by extra efforts put by the Deputy Senate President, Barau I. Jibrin, for moving extra miles and strategizing ways for redress. Responsive and responsible leadership at work.

He immediately condemned the mob action dastardly exhibited when it happened. Then followed by many other well meaning Nigerians. Kudos to all in this direction.

When the Governor of Edo state, H. E. Monday Okpebholo paid a condolence visit to Barau in Abuja, the Deputy Senate President said,
“We cannot undo what has been done. But we all want – all Nigerians, what they are looking forward to, is to make sure that these people are arrested and brought to justice. And you are doing well in that direction. And I’m also glad you’ve spoken about the fact that your government is ready to assist the families of those affected.”

To tell you how concerned Barau is he further stated that, ” I want you to continue to pursue the case so that all those who were involved in these barbaric actions are brought to justice. It’s a barbaric action, to say the facts.

If they are brought to justice, it would serve as a deterrent to those who might want to do this in future. I know that people from other parts of the country have been staying with your people in Edo for centuries in a very conducive atmosphere. And this barbaric act has never happened. I’m sure, under your watch, this will not happen again.”

The Deputy Senate President didn’t stop at that, he called the attention of the President and other well meaning Nigerians, including the security agencies, lamenting over the sad development.

Edo state Governor, started with Senator Barau and from there, based on his fruitful discussion with the Deputy Senate President, he was convinced that his coming to Kano, could douse tension and portray him (Edo Governor) as right thinking leader. Of which he attested to that.

Even before he left Senator Barau in Abuja for Kano, the Governor was made to understand the importance of paying condolence visit to the hometown of the slained victims. Which he also complied. A good of him indeed.

So he came to Kano, visited the Governor of Kano State, His Excellency Abba Kabir Yusuf. From there he proceeded to the see the families of the victims.

What I am trying to portray here is, how the DSP put all the strategies in place for bringing the culprits to book, to douse tension and see ways of giving helping hand to the families of the deceased and to those who sustained injuries.

Governor Okpebholo’s first disclosure about his effort in dealing with the situation was first known during his visit to the Deputy Senate President, when he explained that, “It’s unfortunate that it happened in our state. We are here to say, to let you and other people know that we are not happy.

The President is doing something drastic about this. He is not happy also. The IG has swung into action. The DIG CID is in charge. So far, they have arrested 14 suspects.

So they are bringing them to Abuja for interrogation. We have also set up a Committee to see that we take care of the families of the deceased.”

Distinguished Senator Barau did not stop at that, he visited families of the victims who were gathered at At-Taqwa Mosque, Sabon Fegi, Bunkure local government, as all victims came from Bunkure, Rano and Kibiya local governments, Kano state.

To cushion the effect of trauma in those families he gave the sum of One Million Naira (N1m) to each of families of the 16 deceased ones. Making it a total of N16m in all.

During his visit he was quoted to have said, “I was worried when the incident happened. I had to call the Governor, security agencies and all stakeholders involved.

They swung into action. So far apart from the 14 people who have been arrested, two more suspects have been nabbed. The state governor, who visited my house in Abuja, has assured me that the state government will support you.

We will not take it lightly. We will ensure that the culprits are brought to book and face the wrath of the law.”

Examining and appreciating Barau’s leadership qualities since the occurrence of the ugly incident, the entire families of the deceased commended him through the Chief Imam of the area, Sheikh Zainul Abidina Auwal.

They unequivocally thanked the Senator for his unwavering efforts in ensuring justice, adding that, “Rankai dade Senator you prove to be an excellent representative of your people. You are the leader we so much cherish. Your style of leadership is direly needed for the country’s development.”

To compliment his effort with legislative action, DSP Barau assured that when Senate resumes after Sallah holiday, he would sponsor a Bill to look into the activities of Vigilant groups and their modus operandi.

This will go a long way in checkmating their legitimate activities and other nefarious activities allegedly attach to their operations across the country.

His understanding of the situation and his great concern for Nigerians regardless of where they come from, prompts his moves from multi – faceted approach to make sure that Nigeria is safe and developed.

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

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Opinion

Clarification On Recent Events During The Eid-El-Fitr Celebration In Kano: A Response To The GiGG’s Malicious Statement

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Clarification On Recent Events During The Eid-El-Fitr Celebration In Kano: A Response To The GiGG’s Malicious Statement

In light of the recent malicious statement issued by the Global Initiatives for Good Governance (GIGG), which disrespects constituted authority and has the potential to cause uncertainty and security breaches regarding the events during the Eid-el-Fitr celebrations in Kano, it is important to provide clarification regarding the actions of both the Emir of Kano, Mallam Muhammadu Sanusi II, and Governor HE. Abba Kabir Yusuf.

First and foremost, it is essential to clarify that there was no Durbar held during this Eid celebration. Rather, what took place was the Emir’s procession to and from the Eid prayer at Kofar Mata, located outside the eastern city wall. This procession is a long-standing Islamic tradition (Sunnah), which involves taking a different route from the one followed to the prayer ground when returning. The Emir’s procession, limited to his guards and close officials, followed this practice in accordance with Islamic traditions. Unlike the Durbar, which is a formal parade involving district heads and traditional horse riders symbolizing allegiance to the Emir and the Emirate, this procession was conducted with full attention to both tradition and public safety.

Durbar celebrations, as historically practiced, have not been held regularly in recent years, mainly due to concerns from security forces. The recent event was no exception. Both the Emir and the Governor acted with the intention of striking a balance between preserving cultural practices and ensuring the safety and security of the public. They did not disregard the law or public safety, rather, their actions were aimed at preventing the potential exploitation of the occasion by individuals seeking to disrupt peace and stability.

The breakdown of law and order that occurred was due to the actions of alleged, sponsored criminal elements who hijacked the occasion to create chaos. These individuals sought to tarnish the reputations of both the Emir and the Governor, possibly even attempting to blackmail them and state. We commend the Nigeria Police Force for their swift action in making arrests, which is an important step toward uncovering the full extent of the individuals and networks behind these destructive activities.

It is also essential to address the concerns raised by the faceless NGO. While the police do not have the constitutional authority to outrightly ban traditional programs such as this, they are within their rights to call for a suspension or cancellation based on actionable intelligence aimed at maintaining public safety. Any formal ban, however, would require adherence to due legal process.

The nation is now closely watching the Nigeria Police Force, and we are hopeful that justice will be served swiftly. We trust that ongoing investigations will identify all those responsible for these disruptive actions and ensure accountability.

A.T. Abdullahi
A Concerned Kano Indigene
31st March 2025

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Opinion

Periscoping Waiya’s Alleged Assault on Free Press Viz the Preponderance of Mob Reasoning

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By Al Amin Ubandoma

The recent controversy surrounding Kano State Commissioner for Information, Ambassador Ibrahim Waiya, has sparked heated debates about free press and mob reasoning. The controversy began with an opinionated article written by one Auwalu Ismail, which criticized Waiya that was widely circulated online.

The article contained allegedly malicious and defamatory statements about Ambassador Ibrahim Waiya. As a public figure, Waiya has the right to defend himself against such attacks, and his decision to report the matter to the police was a legitimate exercise of this right.

However, the response from journalists and Amnesty International was swift and merciless. Without recourse to the violation of Waiya’s rights, they condemned his actions as an assault on free press and a threat to democracy.

This mob-like response is a classic example of mob reasoning, where emotions and sensationalism override rational thinking and fairness.

The implications of this response are far-reaching. If public figures like Ambassador Ibrahim Waiya are not allowed to defend themselves against malicious attacks, it could create a culture of impunity where anyone can make false and defamatory statements without consequence.

Furthermore, the response from journalists and Amnesty International undermines the principles of fairness and justice as enshrined in journalistic ethics.

By failing to consider Waiya’s side of the story and his right to defend himself, Amnesty international, and its co-travellers perpetuated a one-sided narrative that ignored the complexities of the issue at stake.

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The controversy surrounding Waiya highlights the need for fairness and balance in public discourse. While free press is essential to democracy, it is equally important to protect the rights and privileges of public figures like Ambassador Waiya.

By prioritizing fairness and justice, we can create a more equitable and just society for all. This requires a commitment to considering multiple perspectives and upholding the rights and privileges of all individuals, including public figures.

The mob-like response from journalists and Amnesty International is a reminder that even in the pursuit of press freedom, we must not trample on the rights of others.

Indeed, Ambassador Waiya’s experience serves as a cautionary tale about the dangers of mob reasoning and the importance of upholding fairness and justice in public discourse.

As we move forward, it is essential that we learn from Waiya’s experience and prioritize fairness and balance in public discourse. This requires a commitment to considering multiple perspectives and upholding the rights and privileges of all individuals.

The protection of human rights is essential to creating a just and equitable society. By upholding the rights and privileges of all individuals, including public figures like Waiya, we can create a more just and equitable society for all.

In conclusion, Ambassador Waiya’s experience serves as a powerful reminder of the importance of protecting the rights and privileges of all individuals, including public figures.

The debate surrounding Waiya’s actions is a reminder that the pursuit of press freedom is complex and multifaceted. While it is essential to protect the rights of journalists and writers, it is equally important to uphold the rights and privileges of public figures.

Ultimately, the controversy surrounding Waiya and the opinionated article highlights the need for a more nuanced and balanced approach to public discourse.

By prioritizing fairness and justice, we can create a more equitable and just society for all. This requires a commitment to considering multiple perspectives and upholding the rights and privileges of all individuals.

As we move forward, it is essential that we prioritize fairness and balance in public discourse. This requires a commitment to considering multiple perspectives and upholding the rights and privileges of all individuals.

The importance of protecting the rights and privileges of public figures like Ambassador Waiya cannot be overstated.

By upholding the rights and privileges of all individuals, including public figures, we can create a more just and equitable society for all.

In the end, Ambassador Waiya’s experience serves as a powerful reminder of the importance of prioritizing fairness and balance in public discourse, and it has indeed brought to fore how not to deployed mob reasoning on issues of human rights

Al Amin Ubandoma, a Public Affairs Analyst writes from Lagos.

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