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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

Encomia As Hajara Ali Exits NECO

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By AbdurRaheem Sa’ad Dembo, anipr

Let me begin this piece with the words of the Famous American Obie Award Winning Actor and Writer, Patrick Foley, “…Retirement is a chance to redesign your life into Something new and different”.It is never the end of the road but an opportunity to start a new life.

On 25th March, 2025 Hajiya Hajara Ali retired from the service of National Examinations Council (NECO) meritoriously as a Director.

She was a mother to all within the Council. A very pragmatic, hardworking, and thorough civil servant.

But I can’t say it all, so I had to reach out to those who have worked closely with her and others within the Council.

Mrs Mary Esezobor opines “Hajiya is a mother, she is free with everybody and has a listening ear.She is friendly, one can enter her office anytime.Many people believe that once a woman is in position of authority, power intoxicates them but that was not the case of Hajiya”.

Similarly,Mr Msughter Igbalaga is a member of staff, who worked with her, explained that “she is naturally simple because she is not the material type. Anything flamboyant Hajiya dislikes it even as a Director. She would come and sit down in the midst of some members of staff to discuss official issues. She values ideas from her staff and abhors laziness.”

Mrs Ebele A. Egbosimba also described Hajara Ali as a friendly and accommodating personality. She asserts ” If you work with her,she would guide you appropriately. She doesn’t engage in discrimination. Her yes is yes, while her No is No.She fights for justice and loves doing the right thing”.

Her Secretary, Mrs Hafsat Shehu Yusuf said, “She is simple and nice. She’s friendly and hardworking.She is a good mother”.

Furthermore, Mrs Sunday A. Nike, who also worked with her captures her personality thus:” She is a mother to me. She is straightforward and generous.There is no challenge you take to her that she would not help you to address it. she is very accommodating and does not discriminate against religion or tribe”.

Husseini Amodu has worked with Hajiya for years, here is his submission about her: “To every objective assessor, Hajiya Hajara epitomizes diligence, discipline, foresight and empathy. She is an advocate of peace, industrial harmony, dedication to duty and servant leadership. Her humility is rare and she is distinctively accommodating. She carries out her tasks with absolute passion and precision, upholding the tenets of exemplary leadership. There is no doubt that her sterling qualities will propel her for higher responsibilities in our beloved country in no distant time, God willing”.

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Essentially, Lukman Ahmed is a member of staff and the former Special Assistant On Poverty Alleviation to Kwara state Governor, Mallam Abdulrahman Abdulrazaq, has this to say about her:

“Hajia Hajara Ali (Our Mother) is a paragon of hard work, selfless service and dedication.

“We celebrate a Mother who has set a high standard of leadership, demonstrating that with vision, courage and determination, even the most daunting challenges are being surmounted.”

“We celebrate an exceptional Woman, Mother, Teacher, Mentor, a beacon of hope, whose impressive achievement in office has left an indelible mark in the history of the Registration Department.”

“Her versatility will be missed “.

Most importantly, Hajiya Hajara Ali is not only religious but pious. Her attitude to work is superb. On the day she retired I went to her office and I met a lot of staff members who came to congratulate her.She made a statement on that day while advising them and it kept knocking on my mind. She said she took her job diligently because she knew she would account before the Almighty about her approach to work and the people around her. She admonished staff members to always do the right thing for the sake of the Council and accountability.

*Her Educational background*

She hailed from Dala Local Government Area of Kano State

Hajara Ali completed her primary school at the Cathedral Girls Primary School, Freetown, Sierra leone in 1977.She attended Government Girls College, Dala,Kano and had a GCE O’ Level WAEC in 1982.

She later proceeded to Bayero University, Kano and graduated with a Bachelor of Science (BSC) Chemistry in 1989.She had a Post Graduate Diploma in Management from the same institution in 1996.

In 2005 she obtained Diploma in Computer Science Education at Cornerstone Computer Institute, Ilorin

In her quest to acquire more knowledge and qualification she went to Bayero University, Kano (BUK) again to study Education at Post graduate level, and she obtained a Post Graduate Diploma in Education in 2009.

In 2012 she bagged Msc Analytical Chemistry in Bayero University, Kano

Hajiya Hajara Ali worked with the Kano State Ministry of Water Resources and served as Senior Research Officer between 1990 and 1999.She later joined the service of the National Examinations Council in 2000 when NECO was established.

Until her retirement,she was the Director of Registration at the NECO Headquarters in Minna, where she made appreciable impact through innovation of ideas and commitment to work .

On 7th April, 2025 during the send forth ceremony organized for her by the staff of the Council at the NECO Conference hall,she received a lot of gifts and accolades from members of staff,and that was a testament to her dignity,hardwork, simplicity and integrity.

Hajiya Hajara Ali is retired but not tired, a woman of such impeccable character should be engaged in higher responsibility.

Against all odds she will navigate the earth and the sky will be her limit just as the former US Secretary of State, Hillary Clinton has said “Where there are no ceilings, the sky is the limit”.

I pray that Allah guides and protects her as she approaches the new phase of life

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Opinion

The King Who Was—A Legacy Etched in Eternity” Tribute To Galadiman Kano

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By Sadiq Abbas Sanusi

A tribute to Galadiman Kano, Abbas Sanusi, a man who embodied royalty beyond title, whose grace and wisdom left an indelible mark on tradition and leadership. His reign in our hearts will never fade.

 

With tears that shall never be forgotten, I write of a man who embodied royalty in every fiber of his being. Galadiman Kano, Abbas Sanusi, was not just a royal by blood—he lived, breathed, and walked the essence of royalty. In a time when Kano saw many princes, none could compare to the dignity, grace, and leadership of this extraordinary man.

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Born into a prestigious lineage, Abbas Sanusi was the grandson of the late Emir of Kano Abdullahi Bayero and the son of the revered Emir of Kano Muhammad Sanusi (the first). He was a nephew to both the late Emir Muhammad Inuwa and the late Emir Ado Bayero.

He was the uncle of Emir Muhammad Sanusi (the second) and a cousin to the Emir, Aminu Ado Bayero. He bore the prestigious title of Galadiman Kano—the highest-ranking traditional title, second only to the Emir himself.

 

Galadima served under multiple emirs with unmatched loyalty and wisdom, not merely as a traditional leader but as a true artist, designer, choreographer, and coordinator of the monarchy. His influence extended far beyond Kano, earning him reverence and respect throughout the northern emirates. His name was synonymous with royalty itself.

 

A living legend of royalty, Galadima Abbas Sanusi was more than a man—he was a symbol of tradition, honor, and nobility. He was a king in every sense but title. And though he has passed, he will forever remain our king in spirit.

 

He was not only the Galadiman Kano; he was our father. And the end of this era marks the beginning of his eternal reign in our hearts. Forever, he will be the king who was.

 

 

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Opinion

Letter To Governor Abba Kabir Yusuf On The Plight Of Sani DZ’s Family

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Aminu Abba Kwaru

I hope this letter finds you in good health and high spirits. As one of the media fraternity and someone who had the privilege of working closely with the late Sani Muhammad DZ (Your Image Maker when you are a Commissioner of works) I feel compelled to reach out to you through this medium regarding the legacy and significant contributions of a dedicated Public Relations Officer, who served both you and the people of Kano State with unwavering commitment.

Late Sani Muhammad formally known as DZ was not just a professional, he was a guider, a father, a friend and a steadfast ally to all journalists during your tenure as the Commissioner of Works, Housing and transport.

Sir, late D.Z’s kindness, simplicity, and dedication to work left an indelible mark on all who had the opportunity to work alongside him in your office.

During the administration of Senator Rabiu Musa Kwankwaso, Late DZ played a pivotal role in ensuring that your accomplishments were communicated effectively and widely, helping to shape the perception of your capabilities as a commissioner.

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Sir, It was through late D.Z’s efforts that many, including the then-Executive Governor, recognized your potential to succeed in the highest office of the state.

Regrettably, since Sani D.Z’s passing, it has become apparent that many of those currently surrounding you now may not know the extent of his contributions towards your success in political journey.

Shehu Bala Kabara, Muhammad Auwalu Tudun Murtala, Rabi’u Aboki Ana’s da wasu da dama shaidu ne Atambaye su Aji amsar SU Kan wannan batu. Kokuma Ahmad (your Personal Photographer now your S.A Videography) shima shaidane. Kai a tambayi Kwamishinan ayyuka ma na yanzu Malam Marwan Aji idan gaskiya na fada. Commissioner Ibrahim Wayya da Sanusi Bature ba maganar SU Tunda su haduwar shekaranjiya ne.

It is paramount that the legacy of individuals like late Sani Muhammad DZ is preserved and honored more especially by you Sir, as he have played an essential role in your political history and your progress personally and politically of Kano State.

I urge you, as a matter of urgency, to extend your hand to the family of Sani Muhammad DZ. In times of sorrow, it is our duty to support those who have been left behind, especially during this difficult period. Your acknowledgment of his contributions and your support towards his family, would not only honor Sani’s memory but also reinforce your commitment to the values of dedication and service that he embodied.

Your excellency Sir,Yadda kake ruwan rabon kudade, ababen hawa, filaye da kujerun aikin Hajji Dan Allah Ka tuna da iyalan Marigayi Sani Muhammad D.Z Ka san shi kuma kasan gudunmowar SA a wajenka kawai dai tuna maka nayi.

Please Ahmad P.A convey my heartfelt condolences to Sani’s family, his students, and all his colleagues who are mourning his loss. The impact he had on so many lives was profound, and his absence will surely be felt for years to come.

Thank you Sir for your time and consideration. I trust that you will see the merit in recognizing the legacy of a truly dedicated servant of the people.

With respect and sincerity,

Aminu.Abba Kwaru

Immediate Past Chairman of

Nigeria Union of Journalist

Radio Nigeria Pyramid FM.Kano

8,April,2025

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