NNRC Encourages NASS to Prioritize The PIB


Monday, February 08, 2021 / 8:34PM / NNRC / Header Image Credit: Twitter; @OfficialNCDMB

Proshare Nigeria Pvt. Ltd.

The Nigeria National Resource Charter (NNRC) has commended recent efforts by both chambers of the National Assembly (NASS) towards ensuring the passage into law of the Petroleum Industry Bill (PIB) this year.

The NNRC, a not-for-profit organization supporting the extractive industry, government, civil society, and citizens to efficiently harness Nigeria's natural resources for public good, produced Nigeria's most comprehensive and up-to-date report on developments in the petroleum sector tagged 'The Benchmarking Exercise Report (BER)' on the state of governance, strengths, and weaknesses in Nigeria's management of its petroleum resources.

The NNRC believes that with the commitments and promises by the leadership of both chambers; Senate and the House of Representatives (HoR) exemplified by the public hearings on the Bill which took place from Monday, 25th January to Thursday, 28th January 2021, there is need to ride the momentum and get all stakeholders on board to achieve what undoubtedly would be the most profound piece of legislation for the transformation of the Nigerian economy.

Having consistently highlighted the weaknesses in two significant aspects of resource management in Nigeria, namely, the contentious issues surrounding the management of host communities impacted by extraction, and the management of the Nigerian National Oil Corporation (NNPC), the NNRC urges the Federal Government to finally resolve the pervasive issues facing the petroleum sector. The Federal Government is encouraged to do this to ensure that Nigeria will be able to meet global best practices and to effectively 'identify, explore, account for, mitigate or compensate for the negative effects of extraction at all stages of the project cycle" and run a National Oil Company (NOC) that is effective accountable, with well-defined mandates and an objective of commercial efficiency."

While addressing the consistent gaps revealed by the NNRC's BER in the past, the NNRC urged the Federal Government to also prepare for the future, by earnestly refocusing the country's energy policies to accommodate the present realities with emerging developments in global energy consumption which encourages the adoption of renewables to support existing fossil fuels. In doing so, the government will not only ensure that Nigeria's natural resources are managed in a way that 'secures the greatest benefit for citizens through an inclusive and comprehensive national strategy, legal framework, and competent institutions', it will also position the Nigerian economy to benefit in the future.

The NNRC said it wished to reiterate key submissions made in its memoranda to the National Assembly, advocating that the PIB provides:

  • Clarity on the capitalization of NNPC to enable it to adopt a commercially focused framework that allows it operate in a competitive space and explore the possibility of an initial public offering (IPO) with more private sector and possible citizen participation as practiced in other countries, allowing for greater transparency and accountability of the Nigerian National Oil Company (NOC).
  • Allow for meaningful participation of host communities in decision making in managing trust; at the Board of Trustees and Management Committee, to engender conducive operating environment.
  • Ensure mechanisms for dispute resolution are accommodated to address conflicts that may arise in the determination of host community entitlements.
  • Liberalize the midstream and incentivize gas investments by not legislating the base gas price but instead allowing it to be determined by the practical framework that considers cost of production and pipeline transportation.

Proshare Nigeria Pvt. Ltd.

Related News

1.   SEPLAT: AGPC Raises $260m to Complete ANOH Project and Drive Energy Transition in Nigeria

2.      2021: FX Stability Crucial to the Nigerian Oil and Gas Industry - Tominiyi Owolabi

3.      New Vaccine Hopes Boost Oil Prices - OIR 260121

4.      Inside Nigeria's 2020 Petroleum Industry Bill

5.      The PIB: Matters Arising

6.      OPEC and OPECplus Take a Jump on Oil Prices as COVID-19 Cases Worsen

7.      Oil Price Rally Paused By Chinese COVID Concerns - OIR 260121

8.      PIB Will Ensure Nigerians Benefit Optimally from Oil and Gas Resources - Ahmed Lawan


Proshare Nigeria Pvt. Ltd.

Turn numbers into inspiring stories and create compelling data dashboards for driving strategic data-driven decisions using Microsoft PowerBI. To learn how, register HERE 

Proshare Nigeria Pvt. Ltd.

Related News