Businessday highlights one of the major problems associated with the continued delay of the passage of the PIB – the deferral of investment decision making for gas development projects. In addition, the article suggests that the proposed fiscal terms for gas will not incentivise oil producing companies to develop gas projects.
A list of the PIB committee members may be found in the Leadership.
The Petroleum Industry Bill successfully passed through the second reading phase in the House of Representatives. As reported by Channels, there was no dissenting voice when the vote was called. The House has constituted a 23 man Special Ad hoc Committee led by Ishaka Bawa, the Chief Whip of the House to review the Bill in detail. We shall provide you with a list of the other members of the Ad hoc Committee as we receive them.
Nigeria’s house of representatives commenced debates on the General Principles of the PIB yesterday. The Bill’s second reading, which is usually a perfunctory stage in the legislative process, has been characterised by very robust debates on certain key terms of the Bill. Some of the issues raised related to the establishment of the Petroleum Host Communities Fund and the discretionary powers of the Minister. The debate continues in the House of Representatives today. See the reports in the Tribune and AfriqueJet.
The effective restructuring of the Nigerian National Petroleum Corporation (NNPC) is one of the major objectives of the PIB. In an indept analysis of the provisions of the current PIB on this issue, the Revenue Watch Institute explains why the current PIB has fallen short of achieving this goal.
A recent article by The Economist expresses concerns about the state of the Nigerian oil and gas industry highlighting issues such as oil theft, regulatory uncertainties, moribund refineries, environmental degradation, pervading corruption and lack of transparency of the national oil company, the Nigerian National Petroleum Corporation (NNPC), as some of the problems plaguing Africa’s biggest oil industry. The article expresses doubtful hope that the current administration can make a difference under the PIB.