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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

Arewa Media Summit:Big Promises, Little Substance-Tijjani Sarki 

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Tijjani Sarki

I was genuinely amazed that the inaugural Arewa Media Summit ended with a communique. For an event presented as a defining conversation on media, governance and accountability in Northern Nigeria, the silence was difficult to understand. It was only after analysts and observers questioned the omission that a comprehensive communiqué eventually emerged.

I have read the document carefully. It is professionally written, politically appealing and rich in democratic vocabulary. Unfortunately, it is also painfully short on substance.

Beyond the impressive language, there is no implementation framework, no timelines, no measurable targets and no independent mechanism to ensure that its resolutions become reality. That is not how transformational policy conversations are measured. It is how public relations documents are often written.

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Even more disappointing is what the communiqué failed to confront. The media space in Arewa is under siege, not only from misinformation but from increasing political manipulation. Today, media platforms are too often deployed to inflame unnecessary controversies, deepen divisions, promote personality cults, settle political scores and manufacture enemies instead of advancing public enlightenment and good governance. This dangerous trend deserved to be the centrepiece of the summit, yet it received only passing attention.

If the gathering truly sought to reshape the future of media in Northern Nigeria, it should have produced practical strategies to strengthen investigative journalism, protect editorial independence, support indigenous media institutions and insulate the media from political capture.

Arewa does not need another annual media jamboree with polished speeches and elegant communiqués. It needs a platform that speaks truth to power, promotes professional journalism, unites rather than divides our people, and produces measurable reforms. Until then, many will continue to question whether this summit advanced the public interest or merely refined the language of political communication.

Tijjani Sarki
Good Governance Advocate and Public Policy Analyst

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Opinion

IDP Is More Than A Humanitarian Case-Ekanem Joan

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By
EKANEM JOAN

When discussions about Internally Displaced Persons (IDPs) arise, attention often turns to numbers and relief packages. Yet behind every statistic is a family that has lost a home, a child whose education has been disrupted, and a community torn apart by conflict. While compensation may replace damaged structures, it cannot restore the memories, dignity, and sense of belonging that displacement takes away.

Recompensation does not make it fine; How do you compensate a child staring at the fire and iron as it takes their lands, while uniforms hang up in a room? How do you price the memory of a mother who once called these lands home. She cuddled her children and the savoury flavour of meals each smiles on her family’s faces, or, the men who spent decades building a life, a family, a shelter, only to watch unconventional disasters take it away. The youths! With their lives sketched on a rough map, all gone – indefinitely. IDPs are just victims of a conflict or a humanitarian crisis waiting to be part of a scheme but humans with lives.

Nigeria is transitioning into durable solutions and we must remind the policy makers that a house is not merely a structure to be replaced but a sanctuary that has been entirely erased, some are memories. These compensations do not weigh the emotional fabric of what has been torn away. At first, it was a crisis to put an end to but then the plan changed, by the end of year 2023, statistics recorded by United Nations High Commissioner for Refugees to about 1.1 million IDPs (approximately 1,134,828 persons) with 50.3% below 18 years old and 49.7% above 18 years old. The same year saw 81.2% Boko Haram insurgency, 1.6% banditry and 16.2% herder clashes. This crisis was most prominent in the North-West region. The issue was worsening, leading to a humanitarian disaster and as the years grew the IDP numbers rose to 3.5 million persons.

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This rise in persons is alarming. An increase of 2.4 million estimated is not fine. Compensation is not enough! as the number of internally displaced persons increased the government shifted its focus from protection and curbing the disaster to putting infrastructure in place. These infrastructures included the 2025 financial injection and the African Union Convention for Protection and Assistance of IDPs into law to provide food and shelter (United Nations High Commissioner for Refugees). The policy makers have decided to place these infrastructures but numbers alone cannot capture the true weight of internal displacement. Statistics do not feel hunger, do not grieve the sudden loss of an ancestral home, and do not carry the psychological weight of an uncertain tomorrow.

The last IDP count done in 2026 by United Nations High Commissioner for Refugees shows total displaced persons as over 3.7 million. The causes still remain armed insurgency, farmer-herder conflicts, banditry and climate change across the affected regions including the North-East, Middle Belt and North-West (Borno, Zamfara, Sokoto and Benue).
87% of the IDPs live below the international poverty line and 60% face high levels of food insecurity, close to decades of displacement leads to limited access to healthcare and schooling. How do we fight a problem without digging out its roots. Across Nigeria millions of Nigerians have lost their land, homes and monuments of memories because of armed conflicts, terrorism, communal clashes, flooding and other disasters.
This does not end in loss of structures but lives too. Imagine a mother who carried a child for 9 months – nurtured and bred, that child wasted! or a father who struggled to give a child all that is needed to watch his own flesh and blood lay on the floor, lifeless.

Displacement hits the most vulnerable demographics hardest. Children are exposed to interrupted education and emotional distress or what about gender-based violence? The uncertainty and emotional weight of being displaced in your own country, your own land.

The Government must address the security gap. There must be increased, professionalized, and transparent security presence in vulnerable regions to prevent the “unconventional disasters” that turn citizens into refugees in their own country. Banditry and herder-farmer clashes are often hyper-local. Success requires empowering local traditional leaders, civil society, and grassroots peace committees to mediate disputes before they escalate into armed conflict.

As the policy makes provision for emergency food, clean water and canvas tents. Yet we know that the deepest wounds of displacement are ones that don’t bleed. Displacement is not just a change of address; it is a sudden, violent fracturing of life, identity and dignity. It is the theft of a person’s yesterday and the total blinding of their tomorrow. The approach is shifting from short term “crisis management” to long term poverty reduction and healing but our main focus should be the roots – reduce or eradicate banditry, set infrastructure to settle communal crisis and provide resources for all citizens, it is not just about moving the CSR to invest in vocational rehabilitation but removing the cause for a better Nigeria.
Fight for IDP and fight for a better Nigeria! It could be you and it could be I. Together we fix this humanitarian crisis.

EKANEM JOAN
200LVL STUDENT OF DEVELOPMENT AND STRATEGIC COMMUNICATION, UNIVERSITY OF ABUJA.
1ST JULY, 2026.

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Opinion

Arewa Media Summit:A Political Jamboree-Tijjani Sarki 

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By Tijjani Sarki

The recently concluded Arewa Media Summit in Kano was presented as a platform to redefine the role of the media in Northern Nigeria. From my observation, however, it fell short of the expectations of a summit and looked more like a political jomboree than a strategic forum for regional renewal.

A summit that claims to speak for Arewa should reflect the diversity of the region’s media ecosystem by bringing together journalists, editors, broadcasters, communication strategists, digital influencers, academics, policymakers and development partners. My observation is that many of these critical voices were either missing or insufficiently represented, giving the event the appearance of a gathering of familiar faces rather than the North’s broad media constituency.

Another observation is that no communiqué or clear resolutions emerged in the public domain after the event. If a summit ends without publicly outlining its decisions, implementation framework or policy direction, it becomes difficult to measure its value beyond the speeches and photographs.

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I also observed concerns that the Honourable Commissioners of Information and Internal Affairs from the Northern states, particularly Kano State’s Comrade Ibrahim Abdullahi Waiya the host state, were not visibly integrated into the programme. If that perception is accurate, it represents a missed opportunity to build a truly inclusive regional media agenda.

Politically, this was also a missed opportunity to provide an inclusive platform for constructive engagement on national issues, including the policies of President Bola Ahmed Tinubu’s administration. Genuine dialogue requires broad participation, not selective representation.

Arewa deserves a media summit defined by vision, inclusiveness, measurable outcomes and institutional credibility, not by optics alone. Until those elements become evident, many will continue to question whether the gathering advanced the North’s aspirations or merely added another event to the calendar.

Tijjani Sarki
Good Governance Advocate and Public Policy Analyst
Can be reach via responsivecitizensinitiative@gmail.com

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