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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

The Fleetingness of Our Existence: The Death of Ajia Muhammad Kamil

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By AbdurRaheem Sa’ad Dembo

I had resumed to work on Monday 15th April, 2024 in Minna after Eid -L-Fitri celebration in Ilorin, when I received a call from one of my colleagues, who broke the news to me that Ajia Kamil had passed on. Innalillahi waina ilaihi rajiun.

The reality of death is scary as it will visit every soul in an unexpected time and manner. Ajia’s demise is a testament that death has nothing to do with age. He was a jolly good fellow. A straight forward young man. We joined National Examinations Council together in 2010.

If there’s anyone who reached out to me on issues concerning our organization I always referred them to Ajia at the Kwara state office in Ilorin.

He was very honest and would do his job diligently. Many of our staff attested to the fact that Ajia was an easy going person and hardworking

One remarkable thing about our relationship is that sometimes last year, he informed me of what he heard about me and upon telling him my own side of the story, he sincerely warned me to desist from any act that may jeopardize my integrity. I thanked him profusely, because he was very blunt with me. He would tell you the truth without looking at your face. That was the kind of human being he was. I never heard a report of him being in feud with anyone.

Another thing he did that I won’t let slip my mind in a hurry was when I missed promotion in 2023, the way he showed concern about it was overwhelming, loving and convincing. He was promoted but he would always call to admonish me not to brood over it. He was a finest gentleman.

The propensity of Ajia’s death hits us so hard, because we have never recorded any death amongst Ilorin Emirate NECO staff since 2010. May Allah forgive him and other departed souls within our organization and beyond.

The irony of death is, you may be forecasting and envisaging that you are still young while in the record of death you are old enough to be taken. That is the multidimensional mode of operation of death. I’m pretty sure that Ajia was not seeing death even in the next 30 years. Indeed, our existence on earth is fleeting.

As believers death will overtake us at the appointed time which is oblivion to our inclination and expectation. That is why we must do all we can to worship Allah, unite our family members and eschew bad deeds. I pray Allah forgives him, grant him aljannah firdaus and give his loved ones the fortitude to bear the loss.

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Opinion

Senate President Akpabio and Religious tolerance

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Senate President Godswill Akpabio

 

By AbdurRaheem Sa’ad Dembo

It is often said that one should not judge a book by its cover. You can only effectively describe a book after one might have gone through its content in what FR Leavis and Q.D Leavis referred to as the “beautifully woven fabrics of a text”

The Leavis are literary critics; they were husband and wife. Therefore,religious tolerance can’t be seen in abstract because it is a practical disposition. One can’t claim emphatically that he or she is religiously tolerant when his actions, transactions and interactions with neighbours, colleagues and friends are in conflict.

It is on this basis,I feel obliged and enticed to talk write about the recent religious tolerance exhibited by Senate President, Godswill Akpabio when he hosted both Muslims and Christians senators for Iftar on Monday,1st April,2024 in Abuja.As a leader you must work the talk.

In his remarks at the occasion, the Senate president opined that religion cannot divide us,”stressing that it was not a mere coincidence that the Christians Lenten and Muslim Ramadan periods came up again same time.He said despite the different religions, Muslims and Christians have one God.

Mr Akpabio congratulated his colleagues for breaking their fast with him and thanked the Almighty God for enabling them to witness the day alive.He sought for God’s protection and good health for all.

He explained that it was not a coincidence that God is merging the fasting of the Muslims and that of the Christian together.He stressed that it was not the first time the two faiths were observing their fasting the same time.

He stressed the need for them to continue to work together as brothers and sisters of the Almighty God, for the benefit of Nigeria.He asserted that for every human being there is a time to be born and there is a time to go.In his words ” no matter the turmoil,no matter the political disagreement,even families do disagree.But we must bear one thing in mind,that we are serving humanity through Almighty God and that one day,we shall leave this world to go and account for our deeds while we were on earth.I think that is the guiding principle.”

One may not be far from the truth if one opines that the Senate President, Godswill Akpabio was speaking like a clergyman through his admonition to co-senators that were present at the event.

The Deputy Senate President, Barau Jibrin,thanked Senate President on behalf of other senators for inviting them for Iftar.According to him “we are really grateful.The invitation is a demonstration of the care that you have for all Senators of the Federal Republic of Nigeria.We all know you as a very caring leader, someone who cares about the welfare of all Senators.”

He equally said the invitation has reinforced what they know about Senate President and linked it to Hausa adage that says”inviting you to come is more delicious than the food.”Senator Barau also said they were happy about the invitation, because it showed that the Senate president has them in mind.He prayed to Allah to continue to be their guide and support as they work with the Executive arm of government to face the challenges confronting the country.In his words “..we are going to change the challenges to prosperity”and that Nigeria would become a land of eldorado within a short time by the grace of God.

Religious tolerance is an integral part of National integration; no one can play down its benefit in the peaceful coexistence of Nigeria.So whenever I see a leader who have proven beyond reasonable doubt that he is religiously tolerant I appreciate the person,just like the way I’m doing it for the distinguished Senate President, Godswill Akpabio.Similarly, President Bola Ahmed Tinubu has also demonstrated the significant level of religious tolerance by hosting series of Iftar with several religious, political and business community leaders in the country during the holy month of Ramadan.

Interestingly, religious tolerance contributes to robust inter-personal relationships in a pluralistic society like ours.It broadens the society for opportunity in order for a nation to actualize her dream.It also abrogates suspicion among adherents of different faith and promote love.This is why I can’t look away without writing something about what Senator Akpabio has done recently.Even as a Governor of Akwa Ibom State for eight years, Akpabio had never been in a news for religious intolerance.This is a greatest feat to his personality and it will continue to resonate across the length and breadth of Nigeria.

Significantly ,I was joyous when I saw my political principal, Senator Saliu Mustapha, the Turaki of Ilorin Emirate sitting by the right hand side of Senate President during the Iftar in Abuja.Senator Mustapha is a top-notch politician when it comes to religious tolerance.He is from Muslim majority Kwara Central Senatorial district, yet he appointed a Christian as a legislative Aide recently.It is obvious that like minds work together.

In conclusion,no Nation can strive where religious tolerance is relegated to the background, therefore we must as leaders and followers imbibe the culture of inclusivity and religious tolerance for a more United and prosperous country.

abdurraheemsaaddembo@gmail.com
07037813177

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Opinion

The Cost of Incompetence in governance. A wake-up call to governors.

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By Yusuf Auwal Saleh Lulu

In the intricate dance of governance, the appointment of key officials holds the power to shape destinies and professional service. However, when political expediency trumps competence, the consequences can be dire. This seems to be the case of many appointments for chief executive officers even for critical professional organisations in the Heath, media and educational sector in most states in Nigeria. This appointment of incompetence tenure, embodies a stark lesson in the perils of appointing leaders devoid of expertise and integrity.

Handling the reins of authority with little regard for meritocracy, lead to character flaws that quickly come to the fore.
Most of these kinds of appointments are characterised by Selfishness, total incompetence to handle or administer professional tasks assigned and driven a voracious greed for personal enrichment, the ill-suited for the weighty responsibilities entrusted turns vaque and rather than stewarding the organization with wisdom and vision, they mostly embarked on a reckless pursuit of quick riches, heedless of the long-term repercussions.

Compounding their incompetence was a glaring lack of proficiency in the field they are appointed to oversee. With scant knowledge of the subject matter, they stumbled through unknown duties, leaving chaos and disarray in his wake.
Most of the organizations where these kinds of appointments are done, are those meant to be a beacon of hope, progress and some even a fighting tool under the government’s auspices, languished under these kind of misguided leadership.

Despite mounting evidence of their ineptitude, with lust most governors remained oblivious and lost to love shadows for their appointees and to the havoc wrought by these kinds of ill-conceived appointments. While some are Blinded or blindfolded to the damages inflicted upon the organization and the broader community.
Oftentimes, most governors turned a blind eye to the signs of impending disaster. Ignoring all signs with complacency shields these kinds of appointments, either from accountability point of view, to subject proficiency and capabilities, prolonging the suffering of those affected by the illusions of their mismanagement.

Yet, time is a relentless arbiter of truth. As the days pass and these kinds of stoothed leadership’s failures become increasingly apparent, the veil of deception woven by political expediency, will inevitably fray.
There will be a time that it will be too late to reverse these kinds of damage wrought by their misplaced trust with a lot of repercussions
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In the annals of governance, the cautionary tale of a selfish, impatient, and greedy leadership may serve as a poignant reminder of the imperative to uphold principles of meritocracy, professionalism, commitment and integrity in service.
For, in the absence of such virtues, the dreams of progress and prosperity risk being dashed upon the rocks of incompetence and folly.

Just because incompetence is elevated.

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