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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.

Breaking: Former Jigawa MILAD Brig. Gen. Aliyu Passes On

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

Kano APC Youth Coalition, Nasir Ja’o’ji and Party Survival

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By Abba Anwar

At cursory look of the title of this piece, what readily comes to mind, is the existing relationship between Kano APC Youth Coalition and Nasir Bala Ja’o’ji, in APC realignment process or procedure. This really captures the picture clearly from the surface. But there is more to it.

Kano APC Youth Coalition came into being more as a one-man-show, probably self-styled and crafty moved. But subsequent engagements of the Coalition, proves otherwise. Some people thought, the Coalition came handy canvassing for primary support for some quasi – politicians, unproductive as they appear, who always hide behind the scene and make a cover under good image of the party leadership at all levels.

Many people, including me, thought this Coalition under Adamu Unguwar Gini, would operate in desperation, under the guise of recuperating party youth into one basket for misleading purpose. As some elders, would-be-elders and self – acclaimed elders operate from clandestine position.

For sure the Coalition, prepared before its debut. Party elders, leaders and other stakeholders were contacted for direction and guide. This, I was not told, but I observed. I understand this by looking at its growing process. I equally understood that, the leadership of the Coalition was one time tilted towards particular side of the prism. But experience and good intention, in my view, necessitated for spreading the leadership into all sections of the state.

It is this strategy, among others, that gave individuals like Hon Nasir Bala Ja’o’ji, to see reason in aiding the movement. Though he is the Zonal Leader of the movement, from Kano Central. But his contribution towards having effective and efficient implementation of the core central objectives of the group, that is making the party stronger and domineering at all levels, gives him the courage to be one of the principal stakeholders.

The recently announced donation of Eighty Eight Million Naira (N88m) to the Coalition for the 44 local governments tour and empowerment of 100 people from each local government, says a lot in his enduring commitment to the expansion and making the party strong enough to compete comfortably come 2027, at both state and national elections.

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The proposed local governments tour and empowerment programme scheduled for time to come, is an important pointer to the fact that, this Coalition has very strong and fearless individuals that are ready to sacrifice their time, energy and resources towards political alignment and realignment within the party structure.

People like Musaddique Wada Waziri, Malam Abdussalam Ishaq (Kumbotso), Umar Maiwayo Rimingado, my younger brother Inyass Habibu, Ibrahim Danyaro, Jijitar, Abubakar Indabawa, former Vice Chairman, Warawa, Dini Manchester Kankarofi, Abubakar Aminu, Hon Barwa, Sani Gilashi, Danfillo, Idris Zango, among many others, are playing very critical role in strengthening the grip of the party across the state and the nation at large.

One interesting thing about this combination is, here are important actors, who, for strategic reason, come from all “sides” of the party stalwarts. Party stalwarts because they are the shining stars of the party in the state.

Stars like Deputy Senate President, Barau Jibrin, former Deputy Governor and Gubernatorial Candidate for 2023 election, HE Nasiru Yusuf Gawuna, former Commissioner for Local Governments and Chieftaincy Affairs and Deputy Gubernatorial Candidate for 2023 election, HE Murtala Sule Garo, Hon Abubakar Kabir Bichi, among others.

But all the Stars above lineup behind our Flagship, the National Chairman of the Party, Dr Abdullahi Umar Ganduje, CON.

After critical review of the intention of the Coalition, Nasir Ja’o’ji comes to believe that, this Coalition means well for the party. And should therefore be facelifted, encouraged, guided and supported. After believing that, the Unguwar Gini led group, “… belongs to everybody and does not belong to anybody…”, Ja’o’ji made it compulsory to always give a helping hand to the group. More importantly, since the Coalition means genuine support for the party at all levels.

Let me still insist that, if Ja’o’ji a political appointee under President Tinubu, as a member Governing Council, of the Federal College of Education (Technical), Potiskum, Yobe State, can do this, contributing N88m, I’m sure other political appointees under the same administration can also replicate.

Because supporting Coalition in the same pace and manner, equals to supporting the party, the National Chairman, and President Bola Ahmed Tinubu at the same time. In my view therefore, Ja’o’ji apart from being a pacesetter among all political appointees from Kano, he is genuinely a firm believer of APC programmes and policies.

My appeal is for the National Chairman of the party, Baba Ganduje, and the Tinubu led administration, to kindly see reason for continued support for the Coalition and similar ones across all the 36 states of the federation, including the Federal Capital Territory, Abuja.

As Unguwar Gini model shows in Kano, Coalition of this nature is not taking away any responsibility of party leadership. We can see how harmonious is the relationship between APC Youth Coalition and state leadership of the party, under Prince Abdullahi Abbas. Another pillar of great substance.

Neutrality of this Coalition, in my own understanding, is clearly manifested in how our shining stars give helping hands to the movement. They are eager to give resources and moral support. It is indeed the neutral posture that gives Ja’o’ji the strength to be of that magnitude.

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

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Opinion

Open Letter to the Former Minister of State, Housing and Urban Development

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Abba Dukawa

As Muslims, we believe in Al-Qadar, the concept of Divine Decree or predestination. This pillar of faith reminds us that everything, good or bad, comes from Allah. We trust in Allah’s wisdom, love, and plan, acknowledging that our lifespan, deeds, and circumstances are recorded in the Lauhul-Mahfuz.

In light of your recent dismissal, I’m concerned that your public statements blaming certain individuals for your removal contradict this fundamental Islamic principle.

You admitted President Bola Tinubu explained your removal was due to the need to balance Kano State’s political representation. Quoting you: “I was surprised, as I wasn’t found guilty of wrongdoing or poor performance… Kano North was overloaded with political officers, hence the need to strike a balance.”

I urge you to reflect on Quran 2:286, “Allah does not burden any human being with more than he is well able to bear,” and Surah Ali ‘Imran, verse 26, “Allah! Possessor of the kingdom, gives the kingdom to whom He will, and takes the kingdom from whom He will.”

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Your rise from local government chairman to deputy governor and minister was Allah’s will. Similarly, your dismissal is part of Allah’s plan.

I caution against desperation and blaming others. Instead, trust Allah’s wisdom and providence.

As a Muslim, it’s inconsistent to think anyone can alter Allah’s plan for you. I believe those close to you are misleading you by allowing you to publicly blame others for your dismissal as Minister of State, Housing and Urban Development. It’s unwise to grant interviews after being relieved of duty, as it comes across as desperate—and your media handlers are equally at fault for permitting it.

Why have the rest of the ministers who were equally sacked remained silent? Why are you the only one expressing dismay for being relieved?

Dukawa writes from Abuja and can be reached at abbahydukawa@gmail.com

 

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Sokoto:Sen. Wamakko’s 9 Years Of “Poor” Representation In The Senate

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Sokoto is known for leadership and where religious knowledge is deep-rooted. So, leaders from the Caliphate are well respected and honour by people from other parts of the country. The reason is clear, Sokoto is the seat of Caliphate that produced great leaders and Islamic scholars of high repute.

So, nobody expects less when it comes to leadership in the state, but if you are a keen observer and follower of activities in Nigeria, you would wonder if the Sokoto they are talking about today, have any link with the activities of the great leaders and scholars that were in charge of Sokoto of years back. Certainly, not, because the kind of leadership is not the same, today its political leadership and followers of Nigerian politics know that, the present day politics can’t provide the kind of leadership the Sokoto of the past provided.

Analysts questioned the negative trend ascribed to Sokoto state. They asked several questions including but not limited to how can the great Sokoto state be rated among the educationally backward states in Nigeria? Why should Sokoto be rated among the poorest state in Nigeria? They are worried that it is not acceptable to count Sokoto state among states with negative statistics on child and maternal health; malnutrition should not be an issue in Sokoto. In fact Sokoto should not be among the state that should be faced with insecurity challenges.

But all these and more are prevalent challenges in Sokoto state and this call to question the kind of leadership the political class in the state are providing. For those who are concern about the happenings in the state, are begining to doubt all the positive publicities some top politicians in the state are enjoying for years.

One politician in the state that fortune has smiled on since the inception of this political dispensation in 1999 is Senator Aliyu Magatakarda Wamakko, he has been around for so many years, from the grassroots to the mainstream politics of the state Wamakko has been at the forefront of leadership in the state. He was deputy governor for 7 years, governor for eight years and now Senator for nine years.

Wamakko enjoyed positive publications as a governor and had some landmark achievements ascribed to his name. He was seen as one of the performing governor in the state. Even though critics and analysts have contrary opinions. They said in terms of impact and cost analysis of some of his projects and or their lifespan/durability, Wamakko’s tenure is more of a disservice to the people of Sokoto than a blessing.

To buttress their argument, the critics and analysts, drew the attention of people of Sokoto to compare what his predecessor Sen. Ibrahim Lamido has done in terms of quality, durability and relevance to the general wellbeing of Sokoto people and the plethora of substandard projects Wamakko littered Sokoto with.

They further argued that to assess the quality and sincerity of Wamakko as a leader, his nine years as a senator should be critically scrutinized and the result of the findings be made public for all to judge. According to the analysts, Wamakko has not represented his people well. As a Senator, they said, he has held privileged committees that should be beneficial to the entire Sokoto, but no soul aside members of his inner circle that has benefitted from his senatorship seat.

They explained that the years of neglect of local governments like Gudu, Tangaza, Binji, Silame is the obvious reason why the Lakurawa terrorists group existed in the area for over 8 years unnoticed by the Nigeria government.

Sokoto North senatorial district comprises of Sokoto North and Sokoto South, Wamakko, Kware, Binji, Silame, Gudu and Tangaza, you go round these local government areas and point to one particular thing the senator has done for members of the senatorial district.

Yes the eastern senatorial district of Sokoto is facing serious security threat in the last seven years, and this has affected socioeconomic activities, which has increased the level of poverty in the region. However, for the last 17 months, things have began to change for better. Purposeful leadership and deliberate actions to change the fact of things can be witnessed.

The purposeful leadership of senator Ibrahim Lamido and deliberate attempt to find a lasting solution to the many challenges affecting the region are so glaring for all to see. For instance, the deliberate investment in education of youth from the region is one sure way of liberating the region from the grip of unscrupulous elements taking advantage of poor level of education in the area to recruit terrorists.

In an unprecedented move and boldness to confront the deep rooted challenges of poor quality of education, Sen. Lamido has sponsored about 50 youth from the zone to study in various fields of human endeavours in India. This is in addition to many interventions in the education sub-sector from the senator, who out concern to the education of youth, declared war against poor education in the region.

This is not happening in any of the senator districts of Sokoto including Sokoto central where Sen. Wamakko spent 9 years representing his constituents in the Red Chamber. It has never happened, it is not happening and I am not sure if there is any plan to do anything like this by the two other senators for the teeming youth in their respective zones. All the eight local government areas of the senatorial district need education intervention including the two metropolitan, but nothing close to this has ever happened. Why won’t Sokoto be rated as educationally backward state when leaders don’t see the need to invest in education of the teeming youth?

Due to the security challenges, Sokoto state is faced with a lot of humanitarian challenges as a result of banditry attacks. And Sen. Lamido has responded well to these challenges. He did not stopped at distribution of relief materials and visitation of victims of banditry attacks, rather engaged in a very robust package of intervention where over a hundred of widows were empowered with N250,000 each to engage in micro and small businesses so as to become self-reliant.

This is done, to facilitate the resuscitation of the economic activities of eastern senatorial district that has suffered from bandits attacks and Sen. Lamido is doing all these from the point of knowledge, that no nation can survive insurrection if it’s people are economically incapacitated.

In the entire nine years of Sen. Wamakko, nobody can provide the record that he has done this kind of gesture. Nobody is talking about giving rice and clothing materials to widows and orphans. Nobody is talking of photoshoot with people who genuinely need humanitarian assistance, but leaders are taking pictures to further exploit people in need of assistance.

Sen. Lamido’s contributions in fighting insecurity in the eastern part of Sokoto if replicated by other senators in the state, nobody would be talking about the Lakurawa terrorists group in Sokoto. Sen. Lamido had from time to time assist communities’ efforts towards ending insecurity. In fact, with permission by the federal security agencies, Sen. Lamido funded the civilian JTF to support the mainstream security personnel in fighting the terrorists operating in the zone. This is in addition to many efforts that can’t be express in black and white due to their sensitive nature all in a bid to restore peace and normalcy in his region.

Such exemplary leadership is lacking in other parts of the state including in Sokoto North, Sokoto South, Gudu Tangaza Binji, Wamakko, Silame and Kware where Senator Wamakko is representing.

Needless to engage in lengthy write up, if Sen. Wamakko in his 9 years did 10% of what Sen. Lamido has done in 17 months in fight insecurity, the Lakurawa terrorists group wouldn’t have penetrated into Nigeria.

The security challenges in the eastern part of Sokoto is receiving the adequate attention of Sen. Lamido. Beside his contributions in fighting banditry, the senator he has equally provided many communities with good drinking water, relief materials and other supports to the Internally Displaced Persons (IDPs) with a view to making their better.

Signed:
Concern Sokoto State Progressive Mind.
Convener

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