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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

Workers’ Day and The Nigerian Workers In Perspective

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By AbdurRaheem Sa’ad Dembo

Every 1st of  May workers celebrate their day globally .It is always a day of reflection, celebration and emancipation of workers around the world.

In Nigeria,May Day as a holiday was first declared by the People Redemption Party (PRP) Government of Kano State in 1980.Afterwards it became a national holiday on May 1, 1981

Before venturing to restrict myself to Nigerian workers let me take a broad look at how May Day emerged in the world.Workers’ Day, stemmed in part, from an ancient European Spring festival,but its modern manifestations arise from the organised efforts of socialist and communist groups to establish a time for honouring workers and the working class.To be specific, the holiday was first promoted by the International Workers Association in 1904 to commemorate the slaughter of protesting labourers in Haymarket Square in Chicago ,United States of America in 1886 and it was to be a day to push for the eight-hour work day and other demands.

The date May 1st was chosen because,in the USA, the eighth- hour workday first came into effect on that date in 1886.It was predicated on the demands of the Federation of Organized Trades and Labour Unions.There was a general strike and a riot in Chicago in 1886, and eventually, the eight -hour workday was legally recognised.

Many people tend to attend the National May Day celebration in Abuja and other State capitals.The president or State Governors would be there as the case may be to make a speech, and thousand would fill the Eagle Square or state stadium to listen to the President or Governor.Some people attend number of other events that hold across Nigeria on May Day,organized by schools,labour unions,hospitals,and other various institutions.People use the day for relaxation since it is a public holiday.

In Nigeria,some people participate in nationwide marches and rallies on workers’ Day or Labour Day.More often their major concerns are usually to clamour for an increase in the minimum wage,an end to workers being left unpaid for months,the need for government action to address the high unemployment rates of recent years ,and the necessity for government action to address the high unemployment rates of recent years, and the need to move Nigeria off of over dependence on petroleum exports.

On a May Day in Nigeria, politicians and labour leaders will give out speeches on the strength and the challenges of Nigerian economy , and on how to improve it for the general good of the country.

It is significant to say that Nigerian workers both in public and private sectors are facing enormous challenges.The disparity in the salary structure and irregular payments of salary as witnessed before the coming of Buhari’s administration in 2015, where a lot of state Governors could not pay their workers for several months.

The Buhari administration ensured that bailouts were given to states to enable them offset their unpaid salaries to workers.That was a plus for the Daura man administration.

Meanwhile, President Tinubu’s administration has also sustained the legacies of prompt payment of workers salaries in the last one year.It is expected , because even as Lagos State Governor he had no history of owing workers.

In a larger context, welfare of Nigerian workers are not properly taken care of, most especially those in private sectors.There are situations where teachers in private schools are being paid peanuts as salaries,whereas the owners or proprietors charge the parents homongous school fees.This is not a hearsay I was once in that shoe as an English language teacher.

The area where the civil servants in both Federal and States are feeling the heats is the non regular payment of promotion arrears.According to sources some agencies under federal government are being owed promotion arrears since 2018.This is not a healthy practice, though some sources said the federal government has put the payment in batches and it is now being paid bit by bit.In some states the promotions are not even implemented let alone payment of its arrears

As Nigerian workers join others around the world to mark 2024 workers’ Day,it is expected that the ongoing negotiation by the federal government and labour leaders on new minimum wage will yield good results.

It is imperative to say that the Federal Government should fix the economy for the collective good and progress of the country.No minimum wage can ameliorate poverty, if there is consistent economic instability.

The level of inflation ravaging Nigerian economy is worrisome.Any minimum wage that is less than hundred thousand naira today won’t make any appreciable impacts in the lives of average Nigerian workers.

Essentially,Corruption can only be tackled effectively and holistically,if there is a reasonable living wage for the civil servants.You can’t fight corruption in a country where workers welfare and retirement package are relegated to the background.According to the human rights lawyer,Femi Falana ” corruption cannot be meaningfully fought by governments that pay poor wages to workers,owe workers and pensioners arrears.”

To the NLC and TUC leaders, providing sincere leadership is key to the quality ,emancipation and progress of Nigerian workers.Adam Oshiomhole was an example of a good labour leader in the history of Nigeria.He stood for the workers even in the face of oppression.So the current leaders should take a cue from his tireless comradeship for the benefit of Nigerian workers.

 

Nigeria is a blessed country and a land of prosperity; her workers have no reason for penurious lives.

Happy Workers’ Day

abdurraheemsaaddembo@gmail.com

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Opinion

Minimum Wage Increment: Be Proactive My Governor.

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Governor Abba Kabir Yusuf

 

By-Abba Hamisu Sani

1st of May every year is a special day for workers in Nigeria working with the government or with the Private sector.

The main issue ahead of this year’s celebrations is the expectation of the new minimum wage Increment.

President Bola Tinubu is expected to announce the new salary scale as Vice President Senator Kashim Shatima hinted recently that by the 1st of May, the new minimum wage will be ready for implementation.

Here I want to salute the courage exhibited by the Edo State governor Godwin Obaseki who has increased the minimum wage for workers in the state from 40,000 naira to 70,000 naira ahead of the 2024 Workers Day celebrations.

This prompted my attention to urge my state governor Abba Yusuf to follow the suit of Edo State governor in this direction.

Kano workers suffered a lot in the hands of the immediate past administration, ranging from different kinds of deductions which causes uncertainty on the amount to be collected by a worker and even pensioners every month.

Governor Abba if you do the same as Obasaki, the Kano people will be happy with you as it will boost the state economy and currency circulation.

It is very imperative at this time to be proactive and not wait for the Federal government announcement before taking your step in making Kano workers happy.

Infrastructural development is quite needed but at this time social security is the most critical as it has been said “A hungry man is an angry man”.

Workers’ salaries are too low to cater to their basic needs, such as food, rent, transportation, and school fees for their children while they see politicians cruising in jeeps and other expensive cars.

Finally, Governor Yusuf remember that these workers have sacrificed a lot during the 2023 elections to see that you emerged as Kano governor.

Is very important to consider their plight at this moment of critical economic hardship.

I urged all comrades in different forms of struggle including civil society Forum to join me in pushing the Kano State government to implement a new minimum wage in a dignified manner as the Edo State governor did.

Abba Hamisu Sani is a
Media Consultant /CEO Time Base TvAfrica & Africa Press.
Can be reached via timebasetv@gmail.com

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Opinion

As Prominent Nigerians Pour Encomiums on the Late Sidi Ali-Dembo

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Late Sidi Ali

 

By AbdurRaheem Sa’ad Dembo

I was not in my regular station in Minna as I took a brief trip to Abuja for an all important matter. In the night of Thursday, 25th April, 2024, I was reading in the news that Alhaji Sidi Ali had passed on. Innalillahi waiina ilaihi rajiun

He was the father of the current Spokesperson of Central Bank of Nigeria CBN, Hakama Sidi Ali (Mrs). According to the news, he was among second Republic Parliamentarians.

Many mourners have trooped to his residence at the NNDC Quarters,Hotoro GRA, Tarauni local government area of Kano State for condolences. He was buried on Friday 26th April, 2024.

Kano State Governor, Abba Kabir Yusuf in a condolence message signed by his spokesperson, Sanusi Bature Dawakin Tofa described late Ali as a trusted public servant who made sacrifices to ensuring that Nigeria remains a united and indivisible country. The Governor acknowledged the positive contributions of the deceased as a Senator in the Second Republic in shaping the Parliament and the overall development of democracy in the country. He extended condolences to his families and prayed for those he left behind to have the courage to bear the loss.

Former President Muhammadu Buhari has mourned the late author describing him as a creative writer. Part of his condolences reads: “I am pained by the demise of the noted journalist, author, and politician, Sidi H. Ali, who won my heart and that of many through his critical writings and the two books he wrote about me.” The former President equally expressed his condolences to his family and admirers.

Deputy President of the Senate, Senator Barau Jibrin has extolled the virtues of the deceased, saying he contributed immensely to the development of the country in both political and media spheres.

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According to a statement from his Adviser on Media and Publicity, Ismail Mudashir the deputy Senate President describes Ali thus: ” The death of our late elder statesman,Alhaji Sidi Ali,is not a loss to his immediate family alone, but a monumental loss to the country as a whole.He served our country meritoriously in different capacities and displayed his wealth of talent for the unity and growth of the nation.”

Barau was at their Hotoro GRA residence in Kano to commiserate with his family and urged them to remain united, and emulate the good virtues of their late father.

The Minister of Information and National Orientation, Mohammed Idris in a statement described late Sidi Ali as a respected veteran journalist, prolific writer, and a politician whose contributions to the field of journalism, literature, and politics have left an indelible mark. He added that Alhaji Sidi Ali, throughout his career, exemplified high standards of professionalism and integrity and provided invaluable insights with historical references into the pressing issues of time.

The minister said that as the nation mourns the loss of Alhaji Sidi Ali, his wisdom, compassion, and dedication to his craft would continue to inspire generations to come.

In the words of Senator Shehu Sani, the mournful message reads:
“I received the sad news of the demise of a renowned Elder statesman, author, journalist, politician and historian, Alhaji SIDI ALI. Apart from Tafawa Balewa and Sardauna of Sokoto, no other Northerner was closely known by historic figures and World leaders in the 60s and 70s like the late SIDI. The late Elderstateman was personally known by President JF Kennedy, Martin Luther King, Jr. Malcom X, Muhammad Ali, Kwame Nkrumah and many others.
The late Sidi Ali was a human library and a prolific writer. He was one man who could recall every event that happened in Nigeria’s history from independence till date. A great loss. My condolences to his family and the good people of Kano State.
May Allah grant him Aljanna firdausi, Amin.”

In the same vein, Lauretta Onochie, the Former Personal Assistant to Former President Muhammadu Buhari on Social Media, on her Facebook post also mourned honourable Sidi Ali. According to her, he was a great journalist, a great writer and a father to her.

One of his daughters said “Baba was a people’s person , he loved people generally across all strata. A humanitarian to the core.
A true Nigerian.
We grew up wearing clothes from MKO Abiola, Oloye Olusola Saraki, and many others”

According to a family source”The late Senator Joseph Tarka family and the people of Benue state were at the deceased residence on a condolence call. The Sidi Ali family and the Tarka Family have a long standing decades of close relationship. Senator Joseph Tarka is the father of the SGF”.

The former Registrar/Chief Executive National Examinations Council NECO, and the current Vice Chancellor, Khalifah Isyaku Rabiu University,Kano Professor Abdulrashid Garba also paid a condolence visit to the family.

Professor Hannatu Sabo, the Jigawa State Commissioner for finance, budget and planing also visited personally to sympathize with the family. Alhaji Sule Lamido, the former Jigawa State Governor,
Former Minister of State for works and Housing, Hon Umar Ibrahim El-Yakub , Senator Gumel,
A member of Federal House Representatives, Alhassan Ado Doguwa and others in the National Assembly from Kano State,Former Senator Aminu Inuwa, Professor Dandago,Kano Commercials ,traders and Academic communities were also fully represented during the condolence visit.

The elder statesman spent years serving the Nigerian International Press Centre, Ministry of Information and National Broadcasting Commission, among other critical institutions.

He travelled wide and his vast experience influenced his affection for journalism and communication. Ali authored 19 books, one of which is “Corruption in High Society”

According to Daily Trust Newspaper (27th April, 2023) “Ali was born in Kano but travelled to Ghana, where he met the country’s political leader, Kwame Nkrumah, who arranged for him to travel to London, and later, the United States to further his education”

In his 2018 birthday message, Former President Muhammadu Buhari established that Ali spent most of his life serving the country as a public affairs officer, “most remarkably for ensuring accurate and balanced information on government activities during and after the civil war.” (PR Nigeria news)

Personally, based on what I have read about late Sidi Ali, one can conclude that he was a fearless and pragmatic writer. It was reported that he was arrested by the regime of General Yakubu Gowon for writing an article against the Federal Government. A good writer is always sensitive and can’t look away when things are not properly done. To me, a coward can’t be a writer. The responsibility of an average writer is to use his pen to draw the attention of leaders to social anomalies in the society with a view to correcting them.

Honourable Sidi Ali was an APC Stalwart and a member of party’s Elders Committee in Kano State. He died at the age of 86 and was survived by children and grandchildren. May Allah forgive his shortcomings and grant him aljannah firdaus.Ameen

abdurraheemsaaddembo@gmail.com

07037813177

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