The newly appointed Group Managing Director of NNPC, Dr. Ibe Kachikwu recently indicated that the reform of Nigeria’s oil and gas industry will start prior to the passage of the Petroleum Industry Bill.
We reported earlier this year that the House of Representatives passed the Bill in the 7th National Assembly, however, the Senate failed to pass the PIB and has not taken up the House version in its 8th Assembly. Indeed, the Senate Majority Leader, Ali Ndume, has been quoted as saying that the PIB was not a priority of this Senate.
The Buhari government is expected to make a number of changes to the Bill, particularly in relation to institutional reforms and the fiscal regime. The absence of a clear policy statement and indicative timelines from the government is, however, a cause for concern for investors.