Monday,
January 25, 2021 / 5:59PM / Senate / Header Image Credit: Today News Africa
President
of the Senate, Ahmad Lawan, has said that the Petroleum Industry Bill (PIB)
presently before the National Assembly will ensure that Nigerians benefit
optimally from crude oil production and the sale of fossil fuel
reserves. Lawan stated this on Monday while declaring open a 2-day public
hearing on the bill by the National Assembly.
According
to the Senate President, the National Assembly in its consideration of the
legislation would ensure that the bill when passed into law, guarantees
improved revenue earnings for the country.
Lawan
said, "let me say this, we (National Assembly) will pass this bill not without
ensuring that it is a bill that satisfies certain conditions".
"Nigeria
is blessed with these resources, we want Nigeria to benefit optimally from
them. We are in a hurry because we have lost so many years of benefits that we
could have had".
The
Senate President, however, noted that the non-passage of the PIB had been a
major drag on the industry over the years, significantly limiting its ability
to attract both local and foreign capital at a time when many other countries
are scrambling to exploit their oil and gas resources.
"The
mere knowledge that the nation's oil industry is still being governed by laws
enacted more than 50 years ago is ludicrous and extremely disappointing".
"As
legislators, we will strive to deliver a Bill that will enhance the growth of
our oil and gas industry, modernize our financial system and enhance
competitiveness, while creating harmony for all stakeholders. This is a promise
we have made and that we shall achieve".
"Nigeria
must have an Oil and Gas Industry that benefits its people. Equally, our Oil
and Gas Industry must be competitive. We must create a sustainable investment
climate, where business in the sector will flourish," he said.
He
added that the determination by the legislature to pass the Bill "is driven by
the need to overhaul a system that has refused to operate optimally in line
with global standards, resulting in loss of continental competitiveness,
transparency, accountability, good governance and economic loss for the
petroleum industry and the country".
The
Senate President noted that the challenges surrounding the future usefulness of
petroleum resources and the increased level of uncertainty on oil demand call
for great concern.
"It
is estimated that with new technologies, fossil fuel may be less attractive if
not of no value in the next 20 years".
"It
is, therefore, time for us to make maximum benefit of our fossil fuel reserves
through this reform before it fades away," Lawan stressed.
According
to him, the Petroleum Industry Bill comprises of 4 chapters that outline how to
create efficient and effective governing institutions with clear and separate
roles for the petroleum industry; establish a framework for the creation of a
commercially oriented and profit-driven National Petroleum Company; promote
transparency, good governance, and accountability in the administration of the
petroleum resources of Nigeria among others;
He
added that the piece of legislation among others, also seeks to promote the
exploration and exploitation of petroleum resources in Nigeria for the benefit
of the Nigerian people; promote the efficient, effective, and sustainable
development of the petroleum industry;
According
to him, the PIB upon passage and assent into law by the President, would "foster sustainable prosperity within host communities, provide direct social
and economic benefits from petroleum operations to host communities; create a
framework to support the development of host communities among others".
Lawan
noted that the bill would "Establish a progressive fiscal framework that
encourages investment in the Nigerian Petroleum Industry, balancing rewards
with risk and enhancing revenues to the Federal Government of Nigeria; provide
a forward-looking fiscal framework that is based on core principles of clarity,
dynamism and fiscal rules of general application; establish a fiscal framework
that expands the revenue base of the Federal Government while ensuring a fair
return for investors".
Lawan
assured that the National Assembly during the public hearing would deal with
all issues relating to the oil and gas industry with thoroughness and
effectiveness, to avoid losses to the economy.
Related News
1. Energy Shares Plunge as Oil Rally Halts - OIR 220121
2. FG Inaugurates the
National Oil and Gas Excellence Centre
3. Oil Demand Fears
Continue to Weigh on Markets - OIR 190121
4. Low Level of Supply
of Liquefied Petroleum Gas Responsible for Price Increase
5. Average Prices of
PMS, AGO, HHK and Cooking Gas - December 2020
6. Collapse of Oil
Prices in Nigeria Causes Recession
7. Impact of the New
Petroleum Industry Bill on Nigeria's Oil
8. Oil and Gas: Seeing
the Future Clearly
9. OPEC Predicts a
Rebound in U.S. Shale - OIR 150121
10. Oil and Gas: The
Future is Gas
11. Oil Demand Recovery
to Fall Short