Experts seek quick passage of PIB amid threat of COVID-19 to oil sector

Frank Ikpefan, Abuja

Experts in the oil and gas industry have called for an accelerated passage of the Petroleum Industry Bill (PIB) by the ninth National Assembly amid threats posed by Covid-19 to the sector.

The experts noted that deregulation of the downstream sub-sector; and acceleration of the submission, passage, and assent to the PIB as well as subsidy removal are urgent reforms needed to reposition the industry.

They made this position during a virtual workshop organised to review key issues that require urgent reforms in the oil and gas industry amid the COVID-19 pandemic.

The workshop, which was organised by the Centre for Transparency Advocacy (CTA), had participants from various Civil Society Groups as well as the media.

In a communique signed by CTA Executive Director, Ms Faith Nwadishi, at the workshop, the participants stressed that they were hopeful that the reform actions put forward if taken, could send a strong positive signal to the world, and also ensure that the oil and gas industry is  properly positioned to stimulate a rapid recovery of Nigeria’s economy in the post Covid-19 period

The participants welcomed the announcement made by the Group Managing Director (GMD) of the Nigerian National Pretoleum Corporation (NNPC), Mr Mele Kyari, on the immediate cessation of subsidy on Premium Motor Spirit (PMS).

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They, however, urged the Federal Government to, as a matter of urgency, provide a legal or policy framework that backs the pronouncement in order to prevent a possible reversal in the future.

They said that the Federal Government should make clear its plan to midwife the transition to a zero subsidy dispensation which should include how the savings from subsidy would be utilised, how the impact of possible future increase in the pump price of fuel on the poor would be alleviated and how local refining capacity would be improved.

On Deregulation of the Downstream sector, the experts recommended that government should seize the current opportunity of low crude prices to deregulate the downstream sector.

The communique said: “On the Petroleum Industry Bill: That the urgent need to overhaul the regulatory framework for the oil and gas industry has been further highlighted by the current crisis facing the industry

“That the executive should, without further delay, submit a draft PIB (in whole or in parts) to the National Assembly for consideration. In turn, the National Assembly, when they receive the bill (or bills), should accord it the urgency it deserves by fast-tracking its consideration and passage

“Overall, we advocate that these actions need to be taken immediately in this period (of lockdown/partial lockdown), as the post-COVID-19 conjecture, from all indications, does not appear favourable.”