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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

Kwankwaso/US Congress And The Jow Jow With Jungle Justice-Bala Ibrahim

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Head Of Kwankwasiyya Movement and former Governor of Kano,Engineer Rabiu Musa Kwankwaso

 

By Bala Ibrahim.

The ambition of the justice system, as highlighted in the law books I read, is to maintain social order and public safety by enforcing laws, upholding the rule of law, and resolving conflicts fairly. It acts to protect individual rights, provide justice for victims, punish offenders, and rehabilitate criminals to prevent future offenses. I am not a lawyer, but having practiced journalism for decades, I am very conversant with the meaning of the word, fair. Fair hearing, fair trial, fair presumption and fairness in the resolution of conflicts. By my understanding, the best process of resolving conflicts should involve peace or peaceful and mutually satisfactory solutions, through listening to the parties and negotiating with them in order to find a comprise or address the root causes of the problem. Ultimately, and without engaging in emotion, the goal is to reach a solution that satisfies all parties. That way, you arrive at a “win-win” situation, thereby avoiding conflict.

America’s status, as the beacon of human rights, justice and democracy, is being contested, because of its regular prioritisation of interests over values. This deliberate bias of interest is making the meaning of fairness ridiculous. And by extension, putting a question mark on the historically projected position of the United States, as the beacon of justice and fair play. As I write this article, some American lawmakers have introduced a bill to the US Congress, seeking to impose sanctions on the former Governor of Kano state and former Minister of Defence, Sen. Rabiu Kwankwaso, over allegations of violations of religious freedom. To the best of my knowledge, no one made attempt to hear from Kwankwaso. According to the provisions of the bill, Kwankwaso is identified as one of the individuals contributing to systemic religious “persecution of Christians that has persisted” in Nigeria.

Let me start by putting the records straight. I am not a supporter of Kwankwaso. We belong to different political parties and we have differences in ideological beliefs. But our differences not withstanding, I am totally in disagreement with the position of those behind the bill that is seeking to sanction him. It is wrong, very wrong and brazenly in conflict with the meaning of fairness. Even the local and international observers of events that are unfolding in Nigeria, would vehemently disagree with that claim. Kwankwaso can be crucified for some sins, political sins, but to implicate him in religious persecution is not only ridiculous but loudly laughable. Anyone familiar with Kwankwaso, knows that he doesn’t belong to the class of people engaged in religious fanatism. Far from that. It is probably an attempt by the powerful, to give the powerless a bad name, in order to hang him. And that smells like a jow jow with jungle justice, I think.

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It reminds me of that old book, written by George Orwell, called the Animal Farm. The famous line from the book says, “All animals are equal, but some animals are more equal than others.” For some reasons, today, America is acting like a country that is in the script of George Orwell’s Animal Farm. The Animal Farm was written based on the Russian Revolution concept, by showing how those in power can be corrupt and how they can oppress the people they’re supposed to help. In todays world, the “Almighty” America is playing the bully, by hurting or attempting to hurt or frighten, some people or countries, so as to force them to do something that they do not want to do. Nigeria has since fallen into the category of those victims. And now, attempt is being made to unjustly, add the name of Kwankwaso.

It is heartening to hear that his movement, the Kwankwasiyya movement, through the NNPP’s National Publicity Secretary, Ladipo Johnson, had issued a statement, describing the whole thing as a blackmail. “The months before the latest development, Kwankwaso had openly reacted when President Donald Trump re-designated Nigeria as a Country of Particular Concern over alleged religious persecution. Kwankwaso cautioned against what he described as oversimplified characterizations of Nigeria’s internal challenges. Kwankwaso stated that it was important to emphasize that our country is a sovereign nation whose people face different threats from outlaws across the country.”-Johnson.

Indeed America is acting according to the 7 rules in the Animal Farm, which goes thus:
1. Whatever goes upon two legs is an enemy.
2 Whatever goes upon four legs, or has wings, is a friend.
3.No animal shall wear clothes.
4.No animal shall sleep in a bed.
5.No animal shall drink alcohol.
6.No animal shall kill any other animal.
7.All animals are equal, BUT some animals are more equal than others.

I cant talk about MACBAN and the two others, whose names appeared alongside that of Kwankwaso, but despite my political disagreement with him, I can attest to the religious tolerance of Eng. Rabiu Musa Kwankwaso. So, the US Congrees men should put on their thinking caps, and know that the name to put in there, is not Kwankwaso.

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Honourable Murtala Sule Garo; he who the cap fits

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By Abubakar shehu kwaru

Let me begin by confessing that, going by the little knowledge i acquired when I was an undergraduate at Bayero university Kano, about two decades ago on the qualities of good leader as contained in the fourteen principles of Henry Fayol, a scholar of business administration as
according to him, a leader must be honest, hard working, responsible, exemplary , discipline, knowledgeable, conceptual thinker, decent and above all be able to unite subordinates.

On the other hand, some scholars are of the view that some people were born to lead and are charismatic in nature hence possess qualities of good leadership but unfortunately they are rare in a given environment.

Way back in 2007, when i attended a Millennium Development Goals MDG youth sensitisation programme organised by citizenship and leadership Training centre Abuja,
absolutely, during the fora, we were specifically taught on the attributes of a credible leader.

A leader with the aforementioned qualities in the contemporary days can be a special or an extra ordinary person whom can be lonely amidst thousands of people, that is why I picked Honourable Murtala Sule Garo as my idol thus, the writing is solely on him.

You can believe me if I confess that I am lucky in my long research and findings having of few potentials to the very sensitive and most top ranking positions in the commercial nerve centre in the west Africa sub-region.

Bearing in mind that, sometimes ‘man proposes but God disposses ‘ as God time is the best and boldly speaking, what He destined in you is the best despite your hastiness, anxiety, qualifications, exposure and massive admiration.

It will be recalled that, way back during 2023 elections, the All progressive Congress (APC) anointed the then Deputy Governor Dr Nasir Yusuf Gawuna and Honourable Murtala Sule Garo (aka commander) as its flag bearers for Governor and Deputy Governor ‘s seats in kano respectively but the dream was not practical as God the supreme being has chosen the incumbent chief executive Engineer Abba Kabir Yusuf for the exalted post .

The secret behind the nomination of these candidates absolutely, would not be unconnected with their track records in politics and their superb rapport with the wider society.

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Take the running mate Honourable murtala Sule Garo for example, a considerate, amiable, courageous , kind-hearted dedicated, hard working, agile, peace loving, patriotic and a leader par excellence who has all the qualities of steering a state like Kano if accorded the mandate.

Honourable Murtala Sule Garo was born about five decades away in Garo town of kabo local government area, Kano north senatorial district and hailed from a royal family as his father Alhaji Sule Galadima Garo of blessed memory was a traditional title holder (Galadiman Garo).

He attended both islamic and western education schools since his childhood before he joined politics.

Garo was onetime state organising secretary of Peoples Democratic Party PDP until his election as Executive chairman of Kabo local government council in 2013 and consequently chairman of All local government of Nigeria (ALGON) Kano chapter during the second tenure of senator Rabi’u Musa Kwankwaso as Governor, a position that opens up and exposed the ability, capacity and leadership attributes of the young talented political icon in kano.

Honourable murtala Sule Garo as time goes on was appointed commissioner for local government by Governor Abdullahi Umar Ganduje in 2015 and reappointed him on similar post in 2019 in view of his effort in matching words with actions hence called with several handsome names that matches his traits.

It is no longer a story that Commander as he is fondly called by his admirers used all available means in transforming lives of many irrespective of their party affiliations as well as gave free hands to council chairmen to observe their spelt out functions.

Definitely, describing murtala Sule Garo as the type of politician that Kano needs the most especially in this present situation when the state Governor Abba Kabir Yusuf is committed in turning Kano to a mega city which is one of the major reasons that
compelled him to decamp from NNPP to APC recently.

There is no doubt that, selecting a workaholic, resilient, and true democrat will steadily but surely reboost the cardinal objectives, policies and programmes of the present administration in the state.

Delightfully, With Garo as second in command, by virtue of his political antecedents Governor Abba Kabir Yusuf will sleep with two eyes closed.

The lieutenants behind the Grand commandant (Garo) will be all out and ready for the battle including his immediate successor at the ministry for local government and former Executive chairman of Nassarawa local government council and ALGON Chairman then, Honourable Lamin Sani Kawaji as well as Former Executive chairman of Karaye local government council and Garo’s successor at ALGON level Honourable Ibrahim Ahmad Karaye (Madaki).

Other commanders are former Executive chairmen of Kano municipal Mukhtari Ishaq Yakasai, Honourable Saleh Kausani of wudil, Abubakar Ali Minister of Ungogo, Honourable Ibrahim Hamisu Rimi of Sumaila but to mention a few.

In the quest to ensure good and transparent administration, credible, reliable and grassroot politicians must be brought forward aimed at attaining better results.

That is why people like Murtala Sule Garo will righteously and honestly be an outstanding pairing partner to Governor Abba Kabir Yusuf when the time comes as they have similar attributes which is glaringly serving the community to the best of their ability.

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Ja’oji, City Boy Movement and Tinubu’s Penetration

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By Abba Anwar

Whether Nasir Bala Ja’oji’s name rings bell or not, in Kano’s political arithmetic, his new appointment as the Kano state Director, City Boy Movement, highlights many things. Especially about his direct relationship with the Presidency.

While Malam Salihu Sagir Takai’s – a rare gentleman of national repute-Coordinator position of Renewed Hope Agenda, in Kano, is in charge of President Bola Ahmed Tinubu’s philosophy, Ja’o’ji’s City Boy Movement is directly linked to the personality of Mr President.

Come to think of it, City Boy is a nickname given to Tinubu during the heydays of 2023 presidential campaign. A term of endearment, referring to his roots in Lagos, a major city in Nigeria. The name also explains his shrewedness as a grassroot politician, who has strong connection to the city. A CITY BOY.

Ja’oji, currently the Senior Special Assistant on Citizenship and Leadership to President Tinubu, is a strategic, logical, calculated, and informed choice to become the Director of this Movement. The pedestal is accurate and not injurious.

While his pedigree as someone who previously served as Special Adviser on Mobilisation to the Kano State Governor, a member of the Governing Council of Coordinated Arewa Youth Groups, advocating for women and youth empowerment, among others, his appointment, still, speaks volumes of his uninterrupted relationship with the Presidency.

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For those who don’t understand how powerful, relevant and engaging this position is, to Tinubu’s interest in Kano, against 2027 power struggle, just look at the category of people congratulating the appointee, Ja’oji. All of them know and understand the influencing power and attitude place on the position. As a build up to 2027 political struggle.

Not only Ja’oji’s pedigree, was what gave him an edge over many for this new appointment, the impact of his being, also speaks a lot. Politicians from South, especially South West, have their yardstick, for measuring what position goes to who and under what circumstance? Unlike, our North, in South, one has to sweatly earn respect, position and influence.

I cannot say City Boy Movement is a shadow government. Why? Because the movement goes round all the 36 states and Abuja. BUT, my but is in capital, the way I see it, State Directors, could be given the same or very similar political responsibilities to shoulder, as equal as that of Ministers and other highly placed positions in states and Abuja, when 2027 election proper, comes calling.

Therefore, Ja’o’ji’s appointment, is not only domineering in its breath and length, it is a stamp of trust and acceptance of loyalty, from Mr President directly. Believe it or not, Presidency must have objectively assessed, the impact of this young man, in his state, before reaching this point.

The way I know the strategic disposition of Ja’oji, as Adon Garin Kasar Hausa, a title conferred on him by Daura Emirate, which recognizes his unwavering commitment in advancing the welfare of women, children, youth and vulnerable groups, City Boy Movement, will definitely be a rallying point of genuine support to President Tinubu, months, years to come. How to achieve that, Ja’oji knows better.

As multi – tasking as I know Ja’oji, this position will not render his other official responsibilities redundant. In fact, this could be a driver to propel others to progress. This, I have no doubt. So for Ja’oji, you should know that, all eyes are on you now.

I am sure the confidence repose in him by the society, will not allow him goofed. He will hopefully stand firm and wield more power and influence. While sky is his limit, the good choice of co-travellers is a prerequisite.

I hope there will be monitoring and evaluation mechanism directly from Presidency, to examine the take-off and activities of all the 36 Directors of the Movement, and that of Abuja. This will help to periscope, in clearer terms, commitment, hardwork and patriotism.

Anwar writes from Kano
Saturday, 7th February, 2026

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