Tag Archives: Petroleum Industry Bill

NASS Plans Petroleum Industry Bill – Dogara

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The Speaker, House of Representatives, Mr Yakubu Dogara, says National Assembly (NASS) is working on its own version of Petroleum Industry Bill (PIB) to reform the nation’s oil and gas sector.

 

The speaker announced this when he received the former Prime Minister of Sweden, Mr Fredrick Reinfieldt in Abuja on Monday.

 
Dogara explained that the decision of NASS to draw up its own bill was reached because of the urgent need to reform the oil and gas sector.

 

He said the House was willing to cooperate with the executive arm of government in bringing about the necessary reform in the oil and gas industry.

 

Dogara expressed optimism that the planned version of the bill, when passed and assented to, would reform the oil sector and amend necessary laws guiding its operations.

 

The speaker added that if the executive comes up with its own version in the process of considering the bill, “there are enough instruments within NASS to merge the two.

 

‘’We hope to introduce it in both chambers of the National Assembly, if it happens that the executive transmits its own version, we have provision in House rules to merge the two’’, he said.

 

He said the need for oil and gas reform Bill became pertinent with the challenges facing the sector and Nigeria’s dependence on revenue accruing from it to fund its budget.

“We have repeatedly called on the executive to present reform proposals in the petroleum sector. However, we may not continue to wait for an executive bill on this subject matter as we are prepared to introduce the National Assembly’s version.

 
“We cannot continue to take the blame for non-passage of the petroleum reform legislation in Nigeria, as I speak to you, work on our own version has reached advanced stage.

 

Dogara said the House would partner with Exractive Industries Transparency Initiative (EITI) first quarter of 2016, to consider and debate the Nigerian Extractive Industry Transparency Initiative (NEITI) audit report.

 

He, therefore, directed the committees on Petroleum (Upstream) and Rules and Business to introduce and reschedule report for debate before the end of the first quarter.

 

Earlier, Reinfieldt commended Nigeria for being one of the first African nations to key into EITI.

 

He stressed the need for transparency and prudent use of natural resources and the country’s early acceptance of Transparency Initiative principles in its extractive industries and also backing it by law.

 

He urged other African countries to take a cue from Nigeria by establishing and empowering local chapters of EITI.

 

Mr Ogbonnaya Orji, Acting Executive Secretary, NEITI, who accompanied Reinfieldt, stressed the need to fight major challenges in the oil sector.

 

Reinfieldt is in-coming Chairman, the International Board of Extractive Industry Transparency Initiative.

 

 

Credit : NAN

Reps To Consider Petroleum Industry Bill Next Week

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Deputy Speaker House of Representatives, Emeka Ihedioha, says the House will commence consideration of the Petroleum Industry Bill (PIB) next week.

Ihedioha, who presided over the plenary on Tuesday in Abuja, disclosed this to the lawmakers. He said that copies of the report from the ad hoc committee on PIB were circulated to lawmakers for perusal.

It will be recalled that the Chairman of the Ad hoc Committee on PIB, Rep. Ishaku Bawa, (PDP-Taraba) submitted the report of the committee’s assignment to the House in March 2015.

The committee had scrutinised 363 sections and annexure of the original bill and made some amendments and recommendations.

The public hearings conducted by the 23-member ad hoc committee in all the geo-political zones provided opportunities for stakeholders to make their contributions to the bill.

The bill, which covered salient areas, is to ensure the establishment of the Petroleum Equalisation Fund and incorporation of National Gas Company.

Others are the establishment of Petroleum Directorate and National Asset Management Company as well as imposition of new tax regime such as Nigeria Carbon Tax.

The committee in its report recommended the removal of Section 191 of the bill, which gave the president discretionary powers to grant petroleum licenses.

However, the amendment recommended is proposing bidding process for the award of licenses.

Other amended areas include Section 174 which recommended that 30 per cent of Nigerian National Petroleum Corporation (NNPC) shares be sold through public offers at the Nigerian Stock Exchange (NSE).

It further amended Section 185, which proposed that 49 per cent of Nigerian Gas Company shares be sold through public offers at the stock exchange.

Under Section 116, the Petroleum Host Community Fund was created to benefit host communities of oil facilities and installations.

The committee retained environmental remediation funds under Section 203, which obligates petroleum investors to pay adequate compensation for the remediation of environmental damages.

Three conventional licensing systems, namely petroleum exploration license, petroleum prospecting license and petroleum mining leases were retained in sections 225 and 229.

The House of Representatives in November 15, 2012 constituted the ad hoc committee on PIB with the mandate to look into the bill and make recommendations toward passing the bill.

The bill will provide legal, fiscal and regulatory framework for the development of the country’s oil and gas industry.

Credit: NAN