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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

Opinion

When Power Meets Purpose: Why Abba Kabir Yusuf’s APC Move Is Kano’s Necessary Turn

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By Abdulkadir Ahmed Ibrahim (Kwakwatawa), FNGE.

In politics, moments arise when loyalty to a platform must give way to loyalty to the people. There are seasons when courage is not found in standing still, but in moving forward with clarity of purpose. Kano State stands at such a moment. The planned defection of Governor Abba Kabir Yusuf to the ruling All Progressives Congress is not an act of betrayal. It is a call to responsibility, a deliberate choice shaped by necessity, foresight, and the overriding interest of Kano and its people.

Perhaps power, when isolated, grows weak. Governance, when detached from the centre, struggles to deliver. Since the emergence of Abba Kabir Yusuf as governor, Kano has found itself standing alone in the national space. Federal presence is thin, strategic attention limited. The state that once sat confidently at the table of national influence now watches key decisions pass by without its voice fully heard. This isolation is not a reflection of the governor’s intent or capacity; it is the reality of operating outside the ruling structure in a political environment where access often determines outcomes.

It is common knowledge that governors do not govern in a vacuum. Roads, security, education, health, and economic revival depend on cooperation between state and federal authorities. When that bridge is weak, the people bear the cost. Kano today needs bridges, not walls. It needs inclusion, not distance. It needs a seat where decisions are shaped, not a gallery where outcomes are merely observed.

The internal tension surrounding the emirate question has further deepened uncertainty. While history and tradition demand respect, governance demands stability. Prolonged disputes distract leadership, unsettle investors, and weigh heavily on public confidence. At such a time, a governor requires strong institutional backing and political leverage to navigate sensitive reforms with balance and authority. Standing alone makes that task far more difficult than it ought to be.

More troubling is the visible absence of federal projects and partnerships. In a country where development is often driven by political proximity, Kano cannot afford to remain on the margins. A state of its stature, population, and historical relevance deserves more than sympathetic silence. It deserves action, presence, and partnership.

It is within this context that Abba Kabir Yusuf’s movement toward the APC must be understood. Not as personal ambition, but as strategic realism. Not as political convenience, but as a pathway to unlock opportunities long denied by distance from power.

By extension, Senator Rabi’u Musa Kwankwaso stands at a defining crossroads. History has placed him in a rare position. He is respected across party lines, commands a loyal following, and remains one of the most influential political figures in Northern Nigeria. Above all, President Bola Ahmed Tinubu holds him in high regard. They share a common political generation, having both served as governors in 1999, shaped by the same democratic rebirth and seasoned by time and experience.

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In addition, one can recall that both Rabi’u Kwankwaso and Bola Tinubu were at the National Assembly under the platform of the now defunct Social Democratic Party, SDP, during the short-lived 3rd Republic. The former was the Deputy Speaker at the House of Representatives while the latter was a Senator together with Late Senator Engineer Magaji Abdullahi who was also elected under the same SDP ticket.

Late Engineer Magaji Abdullahi a former Deputy Governor of Kano State (2003 to 2007) and also a former Chief Executive of the State owned Water Resources and Engineering Construction Agency, WRECA, in the 1980s was a benefactor of Engineers Rabi’u Kwankwaso and Abba Kabir Yusuf were they first met as members of staff.

The late successful Kano technocrat, accomplished engineer, career civil servant charismatic and vibrant national politician was a close ally and associate of Asiwaju Bola Ahmed Tinubu starting from the SDP days and the duo was some of the foundation members of the APC.

The President’s repeated extension of an olive branch to Kwankwaso is therefore not accidental. These gestures are acknowledgements of value, respect, and shared history. They signal recognition of Kwankwaso’s political weight and his capacity to contribute meaningfully at the national level. When such calls come consistently, wisdom suggests they should not be ignored. Kwankwaso should heed the call by moving along with the political direction of Kano State.

The truth is unavoidable. The political home Kwankwaso once built no longer offers the shelter it promised. The NNPP is enmeshed in internal crises that threaten its very identity. Court cases over party ownership and recognition pose serious risks. With the Independent National Electoral Commission recognising one faction amid raging disputes, the platform has become unstable ground for any serious electoral ambition. Under these circumstances, entering the 2027 race either with Abba Kabir Yusuf seeking re election on the NNPP platform or Kwankwaso pursuing a presidential ambition would amount to gambling against history and reason.

The alternatives are no better. The Peoples Democratic Party is fractured, weakened by internal contradictions and persistent leadership disputes. Its once formidable structure now struggles to inspire confidence. The African Democratic Congress, on the other hand, is ideologically and historically uncomfortable for Kwankwaso. Many of its leading figures were once his fiercest rivals. They resisted him in the PDP and are unlikely to allow him meaningful influence now. Political memory is long, and grudges rarely dissolve.

Beyond current realities lies a deeper lesson from history. Regional parties, no matter how passionate or popular within their strongholds, have rarely succeeded on the national stage. From the First Republic to the Fourth, the pattern remains consistent. Nigeria rewards broad coalitions, not narrow bases. Power flows where diversity converges.

The APC today represents that convergence. It is not perfect, but it is expansive. It is national in outlook, broad in structure, and firmly in control of the federal machinery. For Kano, aligning with the APC is not surrender. It is strategy. It is an investment in relevance, access, and development.

For Abba Kabir Yusuf, the move is about delivering tangible dividends of democracy. For Kwankwaso, it is about securing a future that reflects his stature and experience. Loyalty, in its truest sense, is not blind attachment to a platform. It is fidelity to the welfare of followers, to the aspirations of a people, and to the demands of the moment.

Politics is not static. It is a living conversation between ideals and realities. When realities change, wisdom adapts. Kano’s future demands bold choices, not sentimental delays. The music is louder now. The moment is clearer. The door is open.

History favours those who recognise when to move. For Abba Kabir Yusuf and Senator Rabi’u Musa Kwankwaso, the path toward the APC is not a retreat from principle. It is a step toward purpose. They should go back to where they rightly belong. And for Kano, it may well be the bridge back to the centre, where its voice belongs and its destiny can be fully pursued.

Abdulkadir, a Fellow of Nigerian Guild of Editors, former National Vice President of the NUJ, Veteran Journalist, was the Press Secretary of the former Deputy Governor Late Engineer Magaji Abdullahi.

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Opinion

Legislative Brilliance : DSP Barau Lights Up Al-Hikmah University

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By Abba Anwar

The management of Al-Hikmah University, Ilorin, Kwara state, shopped for an individual politician, whose intervention cuts across all sections of the country, with vigor, informed scholarship, skilful understanding of democracy and a patriotic contributor for national development. In their search, they stop on the table of the Deputy Senate President, Distinguished Senator Barau I Jibrin, CFR, as they invited him to deliver the Convocation Lecture during the 15th Convocation Ceremony of the University, Wednesday.

Looking at the title of the lecture, “Managing Executive–Legislature Relations towards Democratic Consolidation in Nigeria’s Fourth Republic,” it is glaring that, only informed political leaders, with the needed exposure, could add value to the discussion. Not vague and fairy tales tellers.

Amidst scholars, democrats and activists, Senator Barau explores legislative expertise and scholarly advancement of discussion about genuine democracy around national development. A position that underscores the imperative of harmonious executive-legislative relations for Nigeria’s democratic consolidation.

While the lecture did not focus “… on the evolving relationship between the executive and legislative arms of government since Nigeria’s return to democratic rule in 1999,” only, the lecture positions the DSP as a scholarly voice of governance.

Being a member of the House of Representatives in 1999 and now a Senator, Deputy Senate President, to be precise, and looking beyond his state or any micro political entity, he believes, profoundly that, the executive and the legislature must work together to address the challenges plaguing the nation.

As he delved into figurative identification of the productive and close nexus relationship that exists between the National Assembly and the executive arm under President Bola Ahmed Tinubu, GCFR, he enunciated that, only collaborative effort, amongst the two arms, could save the country. Hence, in his own terms, both executive and legislature are unarguably on the same page, of making Nigeria great again.

Apart from his scholarly discussion on the theme, his interventions in the education sector, back home in Kano and the nation in general, informed all decisions across the academic environment, there, and students’ bodies, to present to him Awards of Excellence. To officially recognize him as an icon for the development of the education sector in the land.

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They all appreciated his contributions to students through scholarships scheme, for studies in different fields of study. Both within and outside the country. As thousands get access to his scheme. He was identified as one of the leading national politicians whose contributions to education are immensely spotted and glaring. Some defined him as a National Messiah for Education.

Many Professors and academics, who attended the lecture, described him as a scholar in his own right. Whose arguments in the paper he presented, showcase how deeply rooted he is in the art of governance, legislation and engaging democratic activism.

The Deputy Senate President believes that, “A consolidated democracy is one in which political actors, institutions, and citizens internalise democratic norms, and where the probability of democratic breakdown becomes remote.”

He got standing ovation when he paraphrased, Diamond’s (1999) argument that, “In Nigeria’s Fourth Republic, democratic consolidation extends beyond the regular conduct of elections. It encompasses adherence to constitutionalism, respect for separation of powers, accountability, rule of law, and effective inter-institutional collaboration.

The Executive-Legislature relationship therefore constitutes a critical arena in which democratic values are either strengthened or undermined.”

DSP’s deeper knowledge of national democratic structure and his patriotic engagement for national cohesion and adherence to global experience, came on board when he posits that, “Early years of the Fourth Republic were marked by frequent conflicts over leadership of the National Assembly, budgetary processes, impeachment threats, and oversight functions which constitute impediments towards democratic consolidation after prolonged military rule.”

All the bottlenecks in his classical analysis stem from “Executive dominance inherited from prolonged military rule, weak institutional capacity within the Legislature, partisan competition overriding constitutional responsibility and
personalisation of power rather than institutional governance.”

Distinguished Senator Barau’s Al-Hikmah University’s presentation of Convocation Lecture, pushed many to accept the fact and the obvious that, he is indispensably a rare gem in legislative environment and a political stretcher in the national scheme of things. A national figure with global outreach. A gentleman with informed mind, capable hands and coordinated brain. Whose silence and humility are not defeatist, but calculative strategy.

One of the things that you cannot take away from him is, he is a political figure with thoughtful approach to politics.

In his elderly advice to the graduands he said, “As graduands of Al-Hikma University step into society, I urge you to uphold democratic values, demand accountable governance, and contribute intellectually and ethically to Nigeria’s democratic consolidation. Democracy is not sustained by institutions alone, but by enlightened citizens and principled leaders.”

The concluding part of his paper, speaks volume about his unwavering belief in democratic process, patriotic leadership style and informed understanding of national politics devoid of ethnic chauvinism. Hear the gentleman, ” Distinguished audience, Nigeria’s Fourth Republic has endured longer than any previous democratic experiment in our history.

This endurance, however, must be matched with qualitative democratic deepening. Managing Executive–Legislature relations with wisdom, restraint, and constitutional fidelity is central to this task.”

Anwar writes from Kano
Thursday, 8th January, 2026

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Opinion

Beyond the Godfather’s Shadow: Why Governor Abba Kabir Yusuf Chose Kano Over a Provincial Presidential Quest

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​By Kabiru Sani Dogo Maiwanki

​The recent pronouncements by Senator Rabiu Musa Kwankwaso regarding Governor Abba Kabir Yusuf’s strategic political recalibration have finally stripped away the façade, exposing the profound ideological fissures within the NNPP hierarchy. In a caustic address delivered Saturday evening, the Senator characterized the Governor’s newfound autonomy as a “betrayal” of a far more egregious nature than that of his predecessor, Abdullahi Ganduje. However, in this vitriolic attempt to cast himself as the victim of political infidelity, Kwankwaso inadvertently betrayed a disconcerting truth: he viewed the incumbent administration not as a sovereign executive entity, but as a subordinate instrument of his personal political estate.

​Senator Kwankwaso remarked that, as a presidential hopeful, his fundamental expectation was that the administration he purportedly “installed” would function as a geopolitical centrifuge—a financial and logistical catalyst designed to project the Kwankwasiyya hegemony into neighboring Northwestern territories. He expressed profound chagrin that, over two years into this mandate, the machinery of the Kano State government has not been weaponized to “conquer” even Jigawa State for his political brand. This revelation is remarkably candid; it implies that the Senator’s patronage of the current administration was never rooted in the socio-economic advancement of the Kano populace, but was instead a cynical stratagem to treat the state’s commonwealth as a private war chest for a singular, ego-driven presidential odyssey.

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​By resisting this role, Governor Abba Kabir Yusuf has committed what Kwankwaso perceives as an unpardonable “sin,” but what objective observers must recognize as a courageous act of institutional integrity. The Governor’s refusal to allow the Kano State treasury to be cannibalized for regional political expansion is a resounding victory for fiscal prudence and administrative transparency. It represents a principled rejection of the archaic practice where public commonwealth is weaponized to bolster the narrow political interests of a singular godfather at the expense of the citizenry.

​The depth of the Senator’s desperation is now laid bare for all to see. In a striking reversal from his usual posture of absolute authority, Kwankwaso has been reduced to making public appeals for reconciliation. His recent plea—openly asking anyone with access to the Governor to “beg him to come back”—reveals a leader who has finally grasped the magnitude of his loss. It is the sound of a man who realizes that the “innocent aide” he once underrated has not only secured his independence but has taken the soul of the movement with him.

​It is therefore essential for Kwankwaso and other political leaders who pride themselves on their political stature to realize that there is a limit to how long they can continue to deceive and exploit their followers. Respect must be reciprocal; whether between a leader and the led, there is a definitive limit to the amount of insult, manipulation, and contempt any person can endure.

Whenever you push a supporter to the brink and their patience finally runs out, the consequences of their anger will certainly be unpleasant for those in power.
​For the well-meaning people of Kano, this is a moment to offer unalloyed commendation. Governor Abba deserves praise for his steadfastness in protecting the state’s allocations and for prioritizing the welfare of the masses over the expansionist agenda of a political empire. Abba Kabir Yusuf has chosen to be the custodian of the people’s trust rather than a puppet for personal ambition, and in doing so, he has redefined the essence of leadership in Kano.

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