Petroleum Industry Law: Experts, stakeholders express optimism for an improved oil, gas sector
By Uthman Salami and Ariemu Ogaga
Stakeholders and experts in the Nigerian oil and gas have expressed delight and satisfaction over the presidential assent to the Petroleum Industry Bill (PIB), which has since become law, by President Muhammadu Buhari after 13 years of uncertainty.
The Executive Secretary of the Extractive Industries Transparency Initiative (NEITI), Dr. Orji Ogbonnaya Orji, described the assent of the bill as rather commendable in the history of Nigerian oil and gas industry.
Orji, in a statement issued in Abuja said the new Law has ended decades of uncertainty concerning the future of Nigeria’s oil and gas sector.
According to him, “The new law has opened a new phase of wider opportunities in the oil and gas industry. For us in NEITI, President Buhari has broken new grounds, created new business horizon built on healthy legal frameworks that will push the boundaries of reforms in the sector with realistic optimism for inflow of investments, revenue growth and job opportunities.”
He further expressed that NEITI was looking forward to playing active roles in designing a new future for Nigeria’s oil and gas industry under the new Petroleum Industry Act.
He said, “The signing into Law of the PIB has demonstrated government’s resolve to strengthen governance processes and systems especially in the extractive industry through an institutional and legal framework. NEITI is encouraged by the development.”
He added that “The Petroleum Industry Law will provide the dynamic legal governance framework required to re-position Nigeria’s Petroleum industry to fully embrace competition, openness, accountability, professionalism and better profit returns on investments to both companies and government.”
He urged critical stakeholders in the industry to “use this opportunity to call on companies, government agencies and civil society involved in the oil and gas sector governance to give this Law a chance to succeed.
“NEITI as an agency with legitimate interest in the Law will carefully study the contents of the new Law and work closely with national and global partners especially the EITI to use the Law to open the Nigeria oil and gas sector for transparency, accountability and inflow of foreign direct investments into Nigeria.
“NEITI is hopeful that with the new Petroleum Industry Law in place, the huge revenue losses which Nigeria has witnessed over these years as a result of process lapses and weaknesses in previous Laws governing operations in the sector will be strictly checked, while restoring investors’ confidence in Nigeria’s oil and gas sector.
On his part, the Chairman and Chief Executive Officer (CEO), International Energy Services Limited, Dr. Diran Fawibe, reacting to the development said, the new Law would open up investment in the sector, urging stakeholders to maximise its potential.”
According to him, “Nigeria has not been able to maximise her potential because of a variety of issues affecting the oil and gas industry in Nigeria.
“Apart from the pandemic that has affected operations in the industry as many key decision makers in the major oil companies have been working from home while their expatriates are still in their home countries and this also affects some locals as well.
He added that ,“Most of the major companies have shied away from making investments in the country. The unsettling situation concerning insecurity in the various oil producing communities represents a key factor.
“There has been underfunding to develop projects across the different terrains as a result of the delay in passing the Petroleum Industy Bill which happily has been signed into law today by the President, following the passage of the Bill by the National Assembly last month, July 2021.
“It’s regrettable that the Bill was allowed to languish in the National Assembly for about 13 year, a Bill of importance that should be processed for passage within 2 years. However, it’s better now than never,” he added.
Dr Fawibe urged that “We should now work hard to make the best of the various provisions in the new law with a view to engaging in road shows to attract foreign investments with favourable fiscal frameworks enshrined in the new law.”
He, maintained that “It should have positive impact on the industry with regard to investments, while governance and institutional arrangements have been streamlined as well positively engaging the host communities as President Buhari has promised. If the international oil market is favourable, there’s absolutely no reason why Nigeria should not be able to produce 2 million barrels per day or much more.
“All hands must now be on deck with private and public sectors of the industry working collaboratively to maximise the potentials of the industry in order to accelerate the enhancement of the industry operations for the good of the industry and the national economy,” he said.
Similary, an Energy Expert, Mr Charles Majomi said the law will entrench transparency and accountability into the Oil and Gas Industry.
He further noted, it is a new dawn in the oil and gas sector, indicating that the Law will bring clarity for investors.
