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Tag: Petroleum Industry Bill (PIB)

  • PDP chieftain decries Buhari’s refusal to sign PIB

    Mr Emmanuel Ogidi, Chairman, Peoples Democratic Party ( PDP ) South South, has decried refusal of President Muhammadu Buhari to assent to the Petroleum Industry Bill (PIB).

    Ogidi told News men in Abuja on Wednesday that the PIB was dear to the Niger Deltans.

    According to him, the bill seeks to enhance transparency and accountability in the industry, enhance private sector investment and address issues affecting host communities.

    Ogidi said that the bill had been on for many years and that the National Assembly had done all that was necessary to make it see the light of the day.

    He also expressed worry over the president’s refusal to sign the Electoral Law Amendment Bill.

    The chieftain said that the reasons put forward by the presidency for declining assent to the bills were not `acceptable’.

    The presidential aide on National Assembly Matters, Sen. Ita Enang had said that President Muhammadu Buhari withheld assent to PIGB for constitutional and legal reasons.

    He also said that the president declined assent to the draft law initiated to update the outdated Petroleum Act to replace its provisions with a more comprehensive and current legal framework that aligned with global standards.

    Ogidi said that the Electoral Law Amendment Bill was necessary to ensure a credible election in 2019 as it sought to give legal backing to the use of card readers.

    He noted that Buhari promised credible elections come 2019, while receiving his counterparts from Germany and Britain but alleged that the Independent National Electoral Commission (INEC) and the Police had been compromised.

    Read Also: 2019: Five PDP governors seeking deal with Buhari

    He called on all the heads of security agencies to learn from the misfortunes of the recently sacked Director General of the Department of State Security Service (DSS) and live up to expectations.

    The PDP stalwart said nobody is indispensable adding that there were capable Nigerians waiting for the opportunity to serve.

    He said that security issues must be taken very seriously adding that there was urgent need for government to put an end to killings across the country.

    “Nigerians must engage the government and keep talking to be taken seriously, we are not comedians and we must prevent a repeat of what happened in the Ekiti Elections.

    “I urge elder statesmen to keep speaking out and attract the attention of the international community; Nigeria being the giant of Africa cannot afford to be brought low,” he said.

    According to Ogidi, Nigerians, have gone out in their numbers to get registered ahead of 2019 general elections in a bid to sustain democracy

    He described reports alleging that some Nigerians were made to part with money to collect their Permanent Voter Card (PVCs) as `unfortunate’.

    The chieftain expressed confidence that the PDP would win the presidential election come 2019.

    Speaking on the defection of the former Governor of Delta, Dr Emmanuel Uduaghan from the PDP to the All Progressive Congress (APC), Ogidi said that it was of no consequence to the PDP.

    He described the move as a quest for relevance saying that before Uduaghan left office as governor, members of the PDP had already deserted him for lack of performance.

    Following the collapse of St. Paul Catholic Church in Adagbrasa-Ugolo community, Okpe Local Government Area of Delta State, Ogidi urged church leaders to always engage professionals.

    He advised that, rather than engaging church members in building projects, it was safer and better to engage experienced professionals.

    “It is unfortunate that we lose lives daily to killings across the country, we cannot afford to lose lives to collapsed building as well,” he said.

  • Senate holds public hearing on PIB

    The Nigerian Senate today will be holding the Public Hearing on the following Bills:

    1. Petroleum Industry Fiscal Framework Bill;

    2. Petroleum Host Community Bill; and

    3. Petroleum Industry Administration Bill.

    This was made known by the Senate President, Dr. Bukola Saraki via his twitter handle in the early hours of today.

    Senate on PIB

    The Petroleum Industry Bill ( PIB ) seeks to provide solutions to several issues militating against the oil and gas sector in Nigeria.

    The PIB, as a single, all embracing, and comprehensive document, will change the whole gamut of the petroleum industry in Nigeria.

    It will encourage more investment as well as achieve improved regulation, transparency and accountability in Nigeria’s oil and gas industry.

    You can follow the conversation on twitter via: #PIBPublicHearing.

  • New PIB will accord efficiency in oil sector – Dogara

    The House of Representatives says new Petroleum Industry Bill (PIB) being processed by the National Assembly will enable Nigeria operate at efficiency standards expected of 21st century oil and gas industry.

    Speaker of the House, Mr Yakubu Dogara, stated this at the opening of a public hearing on Petroleum Industry Reform Bills at the National Assembly on Tuesday in Abuja.

    Dogara observed that as it currently stood, the government recognised that the industry could no longer meet its aspirations and those of key stakeholders.

    The Bills being considered are Petroleum Industry Administration Bill, Petroleum Industry Fiscal Bill and Petroleum Host and Impacted Communities Bill.

    “You are all aware that the oil and gas industry reform has been a critical issue before the House of Representatives since 2009 when the Petroleum Industry Bill (PIB) was first transmitted as an Executive Bill.

    “The major reason for the reform, which remains even more valid today, is that the petroleum industry in Nigeria is not operating at standards and levels of efficiency expected of a 21st century oil and gas industry.

    “Government recognizes that the industry can no longer meet its aspirations and those of key stakeholders,” he said.

    The speaker expressed regret at the 6th and 7th National Assemblies for their failure to conclude legislative consideration of the PIB.

    “This, in my opinion, was as a result of insufficient consultations and weak ownership of the Bill.

    Read Also: PIB: Saraki warns oil firms against inducing lawmakers

    “It also include absence of requisite political will as well as the extremely divergent and competing views of the government and other major stakeholders on the provisions of the Bill.

    “However, at the National Assembly, the most important set back was that the PIB was difficult to handle by the relevant committees because it was a massive and complex document.

    “It was to repeal and re-enact almost all our petroleum laws into a holistic legislation and because of its sheer size and complexity, the Bill was difficult to consider by the legislative committees in both chambers.

    “The implications of the delay in concluding the oil and gas industry reform which commenced since the year 2000 have been very colossal for our country running into several billions of dollars.

    “The money would have accrued to Nigeria and our economy coupled with the loss of our erstwhile continental competitiveness,” he said.

    Dogara, however, assured that in spite of the setbacks experienced in the past, the 8th National Assembly, especially the House of Representatives, would ensure passage of the bill for completion of oil and gas industry reform.

    According to him, passage of the bill was one of the House’s cardinal legislative objectives.

    “Today’s event is in keeping with our covenant with Nigerians to lay to rest this difficult but surmountable challenge that has been the bane of our oil and gas industry.

    “To ensure a thorough and expedited conclusion of the reform, this House decided to split the reform Bills into logical smaller bills. This way, the individual Bills can be expeditiously considered and passed one after the other.

    “The reform Bills were split into the following Bills – Petroleum Industry Governance Bill 2017, Petroleum Industry Fiscal Bill 2018, Petroleum Producing Host and Impacted Communities Bill, 2018 and Petroleum Industry Administration Bill, 2018.

    “The Petroleum Industry Governance Bill, 2017 has been passed by both the House and Senate and is now before the President for assent,” he said.

    NAN

     

  • Obaseki proposes Livelihood Sustainability Programme for oil communities

    … as Committee on PIB meets oil communities

     

    The Governor of Edo State, Mr Godwin Obaseki, has decried the poor state of affairs in oil producing communities and has proposed a Livelihood Sustainability Programme to address the developmental gaps in the communities.

    He made the proposition on Friday, in Benin City, while receiving members of the National Assembly Joint Committee on Petroleum Industry Bill (PIB), who are in the state to meet with stakeholders in oil producing communities to assess the impact of oil exploration in the communities.

    Obaseki described the visit as timely, as the state was working on a bill that will deal with issues that affect oil producing communities in the state.

    He said the state was also embarking on an enumeration exercise to ascertain the impact of oil exploration activities on oil producing communities.

    “We want to have a tripartite arrangement involving communities, the state government and  oil companies so that the situation in which host communities are abandoned will no longer exist. We want to have a livelihood sustainability programme in the communities” he stressed.

    The governor added that, “The enumeration will involve a baseline study and an action plan that will guide the proper implementation of the tripartite arrangement.”

    He told his guests that the state is planning to utilise the energy sourced from some of the communities to power companies that will be located in the state.

    Earlier, Chairman of the Committee, Senator Tayo Alasoadura, said the visit was to allow oil producing communities in the state make input in the three petroleum-related bills in the National Assembly.

    “We are propagating three bills on oil exploration and the third bill is the Host Community Bill which is the most important because it is the oil-bearing community that gets degraded in the long-run.

    “So we want inputs from the committee before we hold the public hearing in Abuja later in the year,” he said.

     

  • NASS has assured us PIB will be passed by June – NNPC

    NASS has assured us PIB will be passed by June – NNPC

    The Nigerian National Petroleum Corporation ( NNPC ) says the National Assembly has assured that the Petroleum Industry Bill ( PIB ) will be passed by June.

    The Group Managing Director of the NNPC, Dr Maikanti Baru, said this at the 2018 Oloibiri Lecture Series and Energy Forum organised by the Society of Petroleum Engineers in Abuja on Thursday.

    The PIB was split into four parts namely; the Petroleum Industry Governance Bill, which had been passed, and the Host Communities, Fiscal Reforms and Downstream Bills, which are awaiting passage.

    Baru, who was represented by the NNPC Chief Operating Officer Upstream, Dr Rabiu Bello, said the Bills must be looked into in order to attract the needed N25 billion year-on-year investments to the industry.

    “In the area of policy, the popular omnibus single petroleum industry bill has been broken into three parts for quick review and passage by the National Assembly.

    “As you aware, the first part of the bill, the Petroleum Industry Governance Bill was passed by the House recently.

    “When the other sections of the bill are finally passed, it will unlock more than10 billion dollars of investment held up due to uncertainty.

    “The promise we got last week from the National Assembly was that before the end of the second quarter of this year which we see as June 30, they promise the three other bills will also be concluded and passed.

    “So, hopefully, 2018 will see the end of all the discussions around the PIB which started in year 2000,’’ Baru said.

    Baru noted that its planned revamp of four of its refineries in Kaduna, Warri and Port Harcourt, would include an upgrade of their collective refining capacities from their present 445,000 barrels per day (bpd) to one million barrels per day (mbd).

    It said once the 650,000 bpd Dangote Refinery in Lagos come on-stream, Nigeria would become a net exporter of refined petroleum products.

    Baru said the Federal Government had completed more than 500 km gas pipelines in eight years.

    “We have embarked on one of the most aggressive gas reforms and implementation.

    “Accelerated implementation of gas pipeline infrastructure development, with specific focus on critical pipeline infrastructure to power plants being put in place.

    “Between 2010 and today, almost 500 km of pipelines have been completed, commissioned and now delivering gas,’’ he said.

    He listed some of the completed pipelines to include the Oben-Geregu (196km), Escravos-Warri-Oben (110km), Emuren-Itoki (50km), Itoki-Olorunshogo (31km), Imo River-Alaoji (24km), and Ukanafun-Calabar (128km).

    “In addition, there is ongoing construction of the very strategic East-West OB3 pipeline (127km) scheduled for completion by Q3 2018.

    “The expansion of the Escravos-Lagos Gas Pipeline System is scheduled for completion by Q1 2018.

    “Most recently, the Federal Executive Council (FEC) approved the contract award of the 40-inch by 614 Km Ajaokuta-Kaduna-Kano pipeline and associated facilities.

    “This pipeline is expected to supply natural gas to power plants and industries in the northern part of the country.

    “Once completed, the nationwide backbone gas infrastructure will be in place.

    “With the effort in infrastructure development, we would have expanded supply capacity, establishing an integrated gas pipeline infrastructure grid across the entire country,’’ he said.

    The lecture had the theme: “The Nigerian Oil Industry in a world of Changing Energy Supply: Are we prepared?”

    It had panelists from across the sector charting the way forward on gas and renewable energy as oil would soon be phased out with the introduction of electric cars in industrialised countries.

    NAN

  • 2019: Don’t abandon governance for politicking, Saraki warns

    2019: Don’t abandon governance for politicking, Saraki warns

    Senate President, Abubakar Bukola Saraki, yesterday kicked against the heightening frenzy trailing the 2019 general elections.

    Saraki warned that it is too early for 2019 politicking to override the legislative agenda and larger work of governance.

    The Senate President gave the warning in his welcome address to Senators on their return from the Christmas and New Year recess.

    He described the lingering fuel scarcity in parts of the country as man made a situation the chamber was determined to get its root.

    Saraki said, “Distinguished colleagues, it is my appeal to each and every one of us, that our legislative duty to Nigeria and her people, must be uppermost in our minds. We must not allow the upcoming 2019 elections to overshadow our work for the people that elected us – or distract us from that which we are mandated to do by the constitution and the trust reposed in us by the people.

    “This is my appeal: it is too early for 2019 politicking to override the legislative agenda and the larger work of governance. We have begun a good thing with the economic core of our agenda; let us see it to its proper conclusion. It would be most insensitive to the needs of the people of this country if we were to do otherwise. I am directing this appeal not only to us in the chamber but to the National Assembly as a whole, as well as to the Executive and indeed all political actors.”

    “Many were on the queue for petrol; many households are grief-stricken. This mood of reflection is also one from which no lawmaker is immune; what affects one, affects all. When one part of the body is hurting, the whole body hurts, and this holds true for the entire nation.

    “We have all been witnesses to the hardships with which many Nigerians saw in the new year, stuck on fuel queues tailing from petrol stations in many of our cities. It has been disheartening to see, especially during the festive period when Nigerians should have been enjoying carefree time with their loved ones, with enough petrol in their tanks to make that cherished journey to their various hometowns.

    “We, as representatives of the people, feel the pain of the people. Things being the way they were, we could not but respond to the crisis. I therefore had to direct members of the Senate Investigative Panel on Fuel Scarcity to cut short their recess to commence hearings into the lingering problem; and that work is ongoing. I commend the committee for their prompt response and the work carried out.

    “We seek the cooperation and understanding of Nigerians as we try to get to the bottom of this issue. My own estimation of the fuel scarcity phenomenon is that it is man-made. We thought we had left the problem of fuel queues firmly in the past in this country, but sadly, that appears not to be the case. In any event, there is a problem, and it must be solved. We await the findings of the Investigative Panel on Fuel Scarcity, firm in our resolve that whoever is responsible must pay the price for visiting this needless hardship upon our people.

    “You will agree with me that even more sober reflection attends the killings in some parts of the country, particularly recent tragic events in Benue State. We condemn these killings in the strongest terms, and we declare that mindless bloodletting has no place in our society. I offer our sincerest condolences to the people of Benue, and indeed to all who have suffered the loss of their loved ones as a result of these wanton acts.

    “Human life is sacred. We state without equivocation that Nigerian life must become sacred. When we fail in our duty to protect Nigerian lives, it is a tragedy and an indictment on us all. We as the 8th Senate stand ready to help find solutions to assuage the hurt to affected parts, to bring the perpetrators to justice and to enthrone peace in all four corners of this country.

    “Let me state that the 8th Senate is disturbed by these unfortunate incidents, and we have been for some time. We were concerned enough to have inaugurated the Ad-Hoc Committee on Security in November of last year. And so it was that, with the shocking reports from Benue, Rivers and other places, the Security Committee members also cut short their recess to resume sitting, with a view to fast-tracking their investigations, in order to present an interim report for the Senate’s consideration immediately on resumption.

    “We are a people-oriented Senate, and I believe I speak for us all when I pledge that we shall continue to demonstrate similar dedication to our duties this year, as worthy representatives of the people who voted us into office.

    “The 8th Senate has continued its historic run, because by the end of 2017, we had passed 140 Bills over a period of 30 months. The landmark Economic Bills we passed, helped to propel the country’s emergence from recession, powering us upwards in the Ease of Doing Business Report. While the legislative feats of the year gone by shall go down in the annals of lawmaking in this country, what is also true is that we cannot lose momentum, nor can we afford to rest on our oars.

    “Going into the New Year, I can only wish each and every one of us the best as we prepare for the task ahead. It is a crucial year. As you all know, this, in all probability, will be the last productive year before we go into the 2019 electioneering period. Not only is there a need to up the ante in terms of productivity, it is important we keep our eyes on the big picture. Let us not be caught in the political fray before due season.

    “To each and every thing under the sun, its own time. This is Nigeria’s time. Let us devote ourselves to her service. It is therefore imperative that we speed up consideration on the various bills on which legislative work remains outstanding – particularly economic bills. Calling for similar attention are the other parts of the Petroleum Industry Bill (PIB) related bills still to be passed, namely: the Petroleum Industry Fiscal Bill and the Petroleum Host Community Bill.

    “Let me opine that 2018 will be defined by the collaboration between the two chambers of the 8th National Assembly as regards the number of items due for concurrence. We must work to build on the very cordial relationship between the two chambers as witnessed so far, and elevate the level of cooperation, for the benefit of the people.

    “To this end, I urge you all to reach out to our counterparts in the House, so that we can fulfill the lawmaking function in the most expeditious manner. This will help streamline the process – and clear the way for the passing of various legislations – making for improved synergy and joined-up working between the two chambers.

    “Currently, distinguished colleagues, there are two major ongoing issues before us – namely the Constitutional Amendment process and the 2018 Appropriation Bill. It is encouraging to see that the Assemblies in the States have already started work on the Constitutional Amendment; I urge us all to keep a keen eye on developments on that front. With regard to the 2018 Budget, let me take this opportunity to give a word of encouragement to the Committee as they work to ensure the proper conduct of the process.

    “Once more, my distinguished colleagues, we are a people-oriented Senate. Nigerians already have a measure of who we are, particularly through our interventions and engagement in areas such as Job Creation and Youth Empowerment, the Welfare of Nigerian Students Overseas, and the Drug Abuse Epidemic ravaging through Nigerian Communities. We will not relent in our efforts in these arrears.

    “It bears reiterating that we cannot waste a moment of this year that rolls its boundless opportunities out for us. As the legislative arm of government, we must do everything we can to transform the developmental firmament of this country, to bring succour to the masses, and to leave our prints in the sands of time. There is really no other choice. The work is upon us. We can get it done.”

  • Kachikwu -Baru: In search of a truce

    Kachikwu -Baru: In search of a truce

    Will the conflict over the award of contracts at the Nigerian National Petroleum Corporation (NNPC) end anytime soon? Stakeholders wish so, writes Emeka Ugwuanyi

    On Tuesday, Minister of State for Petroleum Resources Dr. Emmanuel Ibe Kachikwu and Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Dr. Maikanti Kacalla Baru met at the 23rd Nigerian Economic Summit in Abuja. The duo plumped hands, smiled together and almost hugged like excited friends who had not seen for some time. Photographers clicked away and it was no surprise that almost all newspapers in the country yesterday had both men on their front pages.

    Was that the first time the duo would meet at events and were photographed together? Certainly not! But what made them candidates for the front pages is the row between them over the running of the NNPC. Kachikwu, who is the chairman of the board, feels left out. Baru thinks Kachikwu is being dramatic and showing signs of not understanding the workings of an agency he once oversees.

    In response to six posers raised by Kachikwu’s loyalists, the NNPC yesterday released a fact-sheet claiming that the minister nominated seven firms for contracts, among others.

    For stakeholders in the industry, the time to end the feud over allegations of insubordination and lack of adherence to due process by Baru in execution of activities in the ministry is now.

    The stakeholders had divergent views on whether Kachikwu or Baru is right or wrong. Not a few agreed that the conflict calls for speedy passage of the Petroleum Industry Bill (PIB), which, they say, contains solutions to the gaps in the NNPC Act. The NNPC Act, according to them, has several gaps that make actions of Baru right and the grouses right, especially as the President doubles as the substantive Petroleum Resources Minister, making Kachikwu and Baru to report directly to the President.

    To them, in absence the PIB, the NNPC Act should be reviewed with roles, action and lines of report properly stated and streamlined.

    Nigerian Association of Petroleum Explorationists (NAPE) President Abiodun Adesanya said Kachikwu and Baru have done well in the oil and gas sector with very tangible achievements to show for it and should not allow political issues destroy these good deeds.

    He said: “What is happening between the minister and NNPC chief is administrative issue and as both of them report to the President, it is important that the President call them and resolve the issues amicably. This will make them accomplish ongoing and planned good works in exploration and other areas of the sector.

    “First and foremost, two of them have done very well as human beings. Chemistry of working together between two people sometimes cannot be as expected. But there must be sincerity and alignment with the aspirations and programmes of the government of the day regardless of their views. If you are called to serve, you align your thoughts to work with the government’s objective.

    “The cardinal goal of this government is anti-corruption. Therefore, all your dealings must align with this objective. All the accusations are in this case are about not following due process and procedures. Nobody has said someone is corrupt.

    “Kachikwu has made a substantial progress in reducing the Niger Delta issues. The nation’s oil production is stable now with the attendant revenue increase for the government. He has resolved the persistent problem with the Joint Venture cash calls. He has also helped to influence the extension of exemption of Nigeria from the production cap by the Organisation of Petroleum Exporting Countries (OPEC).

    “Baru has also ensured unhindered petroleum products supply. Nigerians don’t queue to buy fuel anymore. There has been stability in the downstream subsector with positive impact on the economy. Exploration efforts in the frontier basins especially those in the north are now being professionally and purposefully pursued.

    “If we are making progress in all these, and if someone is perceived to jump procedure, it has to be carefully handled. The issues raised in the conflict are administrative issues under the President and he can manage it.

    “There is need to look at the NNPC Act well, so this kind of issue doesn’t arise again. If the Act provides that the NNPC on one hand reports to the Minister of Petroleum Resources and on the other the President and a case arises where the President is the Minister of Petroleum Resources, the situation should be reviewed and roles streamlined.

    “Governing Board is part of NNPC, so management and board should be on the same page. This can be amicably resolved. On how the NNPC carries out its duties can also be streamlined. The National Assembly is looking into that, to streamlines roles and lines of reporting.

    “This issue brings to the fore the issue of passage of the Petroleum Industry Bill (PIB). PIB has solution to this problem and it becomes surprising why the House Representatives is sitting on the Bill while the Senate is giving it speedy treatment.

    “Let us not allow political issues to destroy the good deeds achieved in the sector. The President should call Kachikwu and Baru, resolve the issue amicable and ensure such issues are treated and resolved internally and kept away from public consumption in future.”

    For the Lead Director, Centre for Social Justice (CSJ), Mr. Eze Onyekpere, the issue calls for need to speedily and totally pass the Petroleum Industry Bill (PIB) into law. He said the managers of Nigeria’s oil and gas resources should be more concerned with maximizing value from the resources for the benefits of Nigerians especially as oil and gas are being threatened by shift to use of renewable energies.

    Onyekpere said he was yet to see any company law that doesn’t present its activities to the board before implementation, adding that the issue is test case for the reforms for the sector.

    “The situation presents a water-tight case for the enactment of the Petroleum Industry Bill (PIB) because the world is not waiting for Nigeria. The nation is currently facing the challenges posed by the increasing production and choice for renewable energy worldwide.

    “The world is moving away from use of fossil fuels and we should be concerned as a nation what to do with the hydrocarbon resources we have before it becomes totally useless. The world is leaving Nigeria behind.

    “The allegations against the Nigerian National Petroleum Corporation (NNPC) are critical because they border on lack of transparency and lack of due process and should be taken seriously irrespective of who is involved.

    “I want to look at the company law that says a company doesn’t report its activities to the board. It is nonsensical to classify firms that lift crude oil as off-takers. Also at what point did the NNPC present the report to the Federal Executive Council (FEC), and who presented the report to FEC when the Minister of Petroleum was not aware? Is it the President the presented it to FEC or was it the Vice President when the President was away?

    “What is happening is an aberration and a watertight case for reforms for the oil and gas sector that is the mainstay of the country.”

    On the proposed suspension of the Minister of State for Petroleum Resources and the Group Managing Director of NNPC by the Senate to enable the upper legislative chamber carry out its probe into the allegations against the NNPC without difficulty, Onyekpere said the suspension should be for the person that ran contrary to the law and due process.”

    Lonadek Oil and Gas Limited Principal Consultant Dr Lola Amao said: “Corruption allegations would continue in Nigeria until anti-corruption systems, processes and procedures are incorporated into governance. I am yet to see any NNPC leader who has not been implicated, caught or accused of being a suspect.

    “The institution was neither established to benefit the masses nor be transparent. I am not sure that Minister, Minister of State and the Group Managing Director can discharge their duties as innocently as they would want to without being implicated in one process, incident, agreement, transaction, contract or another, among others.

    “The sooner we make NNPC a public company for the benefit of all Nigerians and have Incorporated Joint Ventures (IJVs) source for funding based on Return on Investment (RoI), the better for Nigeria. I hope this case highlights the need for NNPC to go public (privatized).”

    Another stakeholder, who pleaded anonymity, said: “What is happening between the Ministry of Petroleum Resources and the NNPC is political. The battle for the life of Nigeria in 2019 has just started in NNPC Towers.

    “Nigerians should be on the alert and watch events unfold. They will recognise the cabal and characters of the soap opera.

    “NNPC needs to be privatised so the Corporation will be subject to Nigerians and not Nigerians subject to NNPC.”

  • My grouse with PIB, by David-west

    My grouse with PIB, by David-west

    A former Minister of Petroleum Resources, Prof. Tam David-West, Wednesday described the Petroleum Industry Bill (PIB) as a rumbling bill which is faulty in many ways as it still stands.

    David-West bore his mind in a chat with The Nation Wednesday.

    According to the former minister, the title of the original draft of the bill contained 40 words. “So, it can’t be a serious bill.” He said.

    David-West, who is a professor of Virology, said the bill prescribes establishment of another Petroleum Training Institute in Kaduna, which he said would be a waste of resources, including manpower because the one in Effurun, Delta State is successful in its role.

    Besides, the former minister said the bill gives too much power to some individuals, including the oil minister. Should the bill be passed as it is, he said foreign oil partners in joint ventures will leave Nigeria which could collapse the industry.

    He added: “The bill is too political as it is. If it is passed like that, the industry will collapse. So, it should be looked into.”

    David-West also faulted highlight of the local content inclusion in the bill, saying it is not a new or great initiative.

    According to him, he, as Oil Minister in 1984, enforced it with foreign oil companies without making noise about it.

    His words: “Local content initiative has been in operation already. We did it without making noise about it when I was Oil Minister. I enforced it with the foreign companies then. I did not allow them bring any expatriate for any job for which there are skilled and qualified Nigerians. The companies signed the agreement with us and we enforced it. So, there is nothing new or great about it. The bill needs to be looked into before it is passed so that the oil industry in Nigeria will not collapse.”

     

  • ‘$18bn Dangote refinery will boost Nigeria’s foreign investment’

    ‘$18bn Dangote refinery will boost Nigeria’s foreign investment’

    The Independent Petroleum Marketers Association of Nigeria ( IPMAN ), western zone, on Wednesday says that the 18 billion dollars Dangote refinery will boost the country’s foreign investment when it finally comes on stream.

    The Zonal Chairman, Alhaji Debo Ahmed, said this in an interview in Lagos against the backdrop of arrears of N800 billion government owed marketers on subsidy.

    The Dangote refinery, which has the capacity to refine 650,000 barrels of crude oil per day with petrochemical plant which will produce 780 KTPA Polypropylene, 500 KTPA of Polyethylene, is expected to come on stream by 2019.

    Ahmed said the multi-billion dollar project, when completed, would finally address the challenges facing the downstream sector of the oil and gas industry and also aid the nation’s economy.

    He said that the refinery would also attract more foreign investments into the country’s economy and boost oil and gas revenue , while urging Federal Government to intensify support for the actualisation of the project.

    The IPMAN boss urged government to formulate policies that would liberalise the market to promote downstream sector.

    He said that government had a lot of roles to play in setting the right policies for a robust and investment friendly atmosphere.

    According to him, the refinery is expected to create over 300,000 jobs and eradicate petroleum products importation in the country by the first quarter of 2019 when it’s finally completed.

    “The refinery, when completed, would save the country billions of dollars foreign exchange on petroleum product importation and also create foreign exchange earning to Nigeria from the savings.

    “The refinery would also complement the existing refineries in the country to boost refined products and would crash the price of Premium Motor Spirit (PMS) because the product is refined in the country.

    “Therefore, it will save some costs incurred in the import market and crash price of petrol in the market,’’ he said.

    Ahmed, however, appealed to the National Assembly to expedite action on the passage of the Petroleum Industry Bill (PIB) that would reshape the oil and gas industry.

    He said that the pending bill had affected the economy’s growth of the industry, adding that the passage of the governance aspect of the bill was a right direction but other bills needed to be addressed urgently.

    NAN

  • Economy to lose N150bn daily to PENGASSAN, NUPENG strike – LCCI

    Economy to lose N150bn daily to PENGASSAN, NUPENG strike – LCCI

    The Lagos Chamber of Commerce and Industry ( LCCI ), has warned that the economy would lose an estimated N150 billion daily, if the proposed strike by PENGASSAN and NUPENG is not averted.

    The Director-General of LCCI, Mr Muda Yusuf, disclosed this in an interview on Monday in Lagos.

    Yusuf said that it would not be a good development for an economy that was just emerging from recession.

    The two unions had threatened to embark on an indefinite strike over delay in the payment of N800 billion subsidy arrears to oil marketers.

    Yusuf urged the Federal Government to engage the unions and propose a credible payment plan to settle the arrears.

    He noted that the consequences of the proposed strike would be severe because of the strategic and critical nature of the oil and gas sector.

    “It would paralyse the chain of logistics in the economy as economic activities are driven largely by road transportation, both for commuting and freight.

    “It will impact on revenue as the upstream sector would be affected as well. It would impact the power sector which is largely powered by gas,“he said.

    The LCCI boss noted that the fuel subsidy phenomenon had become a recurring distraction in the management of the country’s economy.

    “It is regrettable that government has over the years got itself entangled in a problem which should not have arisen in the first place,“he said.

    He alleged that the country’s economy had suffered serial scandals and monumental corruption in the oil and gas sector because of the phenomenon of petrol subsidy.

    “We have consistently argued that the government should completely decouple itself from the business of importation, refining, transportation and retailing of petroleum products.

    “This arrangement has created considerable distortions and stagnated private investment in the downstream sector because these are enterprises that the private sector is best suited to manage,“he said.

    Yusuf said that government has no business fixing prices and subsidising the players.

    He said that in spite of  the monumental problem  the economy had from the subsidy regime, government has not taken urgent steps to put an end to price fixing for PMS.

    “The economy cannot sustain this arrangement. The current debt of N800 billion is 151 per cent of the total capital allocation for the Federal Ministry of Works, Power, and Housing in the 2017 budget.

    “It is 1,568 per cent of the capital allocation to health; it is 305 per cent of the capital allocation to Federal Ministry of Transportation; and 1,600 per cent of the capital allocation to education.

    “This raises vital questions about the optimality and efficiency of resource allocation and utilisation by government,” he said.

    He called for speedy passage of the Petroleum Industry Bill ( PIB ), adding that it will help to normalise the oil and gas sector.

    Yusuf urged the government to replicate the telecoms sector model in the oil and gas industry, adding that it would free resources for investment in critical infrastructures like power, roads, the railway, health and education sector.

    He stressed that the model would improve product availability, eliminate fuel queues, and create more jobs for the teeming youth in the downstream oil sector.

    NAN