Nigeria lost $50bn in 10 years due to uncertainty over petroleum industry – Buhari

President Muhammadu Buhari on Wednesday in Abuja said Nigeria lost an estimated $50billion worth of investments in 10 years.

This, according to him, was a result of the uncertainty of the non-passage of the Petroleum Industry Bill (PIB), lack of progress and stagnation in the petroleum industry.

In his remarks at a ceremony on passage of the PIA, which preceded the Federal Executive Council (FEC) meeting, the President said the stagnation affected the growth of the economy, citing lack of political will on the part of past administrations to actualize the needed transformation.

President Buhari said assent of the Petroleum Industry Bill on August 16, 2021, marked the end of decades of uncertainty and under-investment in the petroleum industry.

“We are all aware that past administrations have identified the need to further align the industry for global competitiveness, but there was a lack of political will to actualize this needed transformation.

“This lack of progress has stagnated the growth of the industry and the prosperity of our economy. In the past ten years, Nigeria has lost an estimated US$50billion worth of investments due to uncertainty created by the non-passage of the PIB.

“This administration believes that the timely passage of the Petroleum Industry Bill will help our country attract investments across the oil and gas value chain.

“In view of the value our Nation and investors will derive from a stable fiscal framework for the oil and gas industry, our Administration has found it necessary to work with the two chambers of the National Assembly to ensure the passage of the PIB,’’ he said.

President Muhammadu Buhari presides over the Federal Executive Council (FEC) meeting in Abuja on August 18, 2021.

According to a statement by his special media aide, Femi Adesina, the President noted that the signing of the bill was part of the administration’s commitment to building a competitive and resilient petroleum industry that will attract investment, improve the country’s revenue base, create jobs and support the economic diversification agenda.

President Buhari said as a “nation that depends on oil resources for the development of other sectors, Nigeria runs a Petroleum Industry that is governed largely by laws enacted over 50 years ago such as the principal legislation; the Petroleum Act of 1969 and other obsolete legislation.’’

According to him, the Presidential assent of the bill to “Petroleum Industry Act 2021” marked the beginning of the journey towards a competitive and resilient petroleum industry that will attract investments to support the nation’s Economic Recovery and Growth Plan.

“The ‘Petroleum Industry Act 2021’ creates a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation.

“The Act also provides for a direct benefit framework that will enable sustainable development of host communities. I appeal to the host communities to look carefully at the contents of the Bill which in the implementation will bring real and lasting benefits to them.

“Furthermore, the Act provides for deliberate end to gas flaring which would facilitate the attainment of Nigeria’s Nationally Determined Contributions of the Paris Agreement through a funding mechanism to support gas flare out project in host communities,’’ he added.

President Buhari said the administration believes that the timely passage of the Petroleum Industry Bill will help the country attract investments across the oil and gas value chain.

While directing immediate implementation of the framework for the Petroleum Industry Act (PIA), he urged all relevant stakeholders to comply and reposition for full activation within 12 months.

The President said the Minister of State for Petroleum Resources, Timipre Sylva, will head the implementation team, urging all Ministries, Departments and Agencies (MDA) to adjust to the transition, designed to reposition the economy.

“To consolidate the commitment of this administration to delivering the value proposition of this law, I have approved an implementation framework commencing immediately to ensure the industry envisaged in the new law begins to take shape.

“The implementation process to be headed by the Hon Minister of State, Petroleum Resources is hereby tasked with the completion of the implementation of this act within 12 months. I am, therefore, directing all relevant Ministries, Departments and Agencies of government to fully cooperate in ensuring the successful and timely implementation of this law,” he said.

President Buhari commended the leadership of the 9th Assembly for what he described as their continued pursuit of national aspiration and demonstration of mutual harmony with the executive in the pursuit of patriotic outcome in the passage of the PIB.

“I also commend the entire team in the executive that worked tirelessly to ensure the delivery of this strategic legislation for our country. I thank Nigerians and other industry stakeholders for their contributions and support in achieving this historic landmark,” he said.

The ceremony was attended by the Senate President, Dr. Ahmed Lawan, Deputy Senate President, Ovie Omo-Agege, Deputy Speaker Hon. Ahmed Idris Wase and other lawmakers, members of the Federal Executive Council (FEC) and Group Managing Director of the NNPC, Mele Kyari.