SENIOR Advocate of Nigeria (SAN) and Legal Adviser to Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Femi Falana, disclosed on Wednesday that Nigeria has lost over $60 billion due to the failure of Federal Government to enforce a law enacted 17 years ago in the oil and gas industry.
Falana made this known as he also declared that the refusal of President Muhammadu Buhari to sign the Petroleum Industry Bill (PIB) into law is a major victory for the International Oil Companies (IOCs).
The Human Rights lawyer, who was quoting from a Supreme Court decision on a case instituted by Akwa Ibom State and two others against the Federal Government, pointed out that the failure to enforce a section of that Law; which states that “adjustment in payable royalty must be made anytime oil price goes beyond $20 per barrel,” led to the huge loss of revenue to the country.
Falana spoke while presenting a lead paper at a roundtable discussion on the topic: “Local Contents in the Nigeria Oil and Gas Industry: Wherein Lies Interests of Nigerian Workers,” an event to mark the 40th Anniversary of NUPENG.
To this end, he tasked the Nigeria Union of Petroleum and Natural Gas Workers(NUPENG), as well as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), to ensure that the provisions in the Nigeria Content Act; designed to make Nigerians take over the ownership of the Oil and Gas sector are implemented to the latter.
He said: “The refusal of President Buhari to sign the Petro|eum Industry Bill into law is a major victory for the IOCs which would have to do with new fiscal terms in favour of Nigeria, increasing local ownership of the oil and gas industry, and strict control of industrial waste and pollution of the oil producing communities.”
He added: “The primary objective of the Nigerian Oil and Gas Industry Content Development Act, 2010 is to provide for the development of Nigerian Content in the Nigerian oil and gas industry, the Nigerian Content plan, supervision, coordination, monitoring and implementation of Nigerian Content and for related matters.
“Accordingly, all regulatory authorities, operators, contractors, sub-contractors, alliance partners and other entities involved in any project, operation, activity or transaction in the Nigerian oil and gas industry shall consider Nigerian Content as an important element of their overall project development and management philosophy for project execution.
“In particular, Nigerian Independent operators shall be given first consideration in the award of oil blocks, oil field licences, oil lifting licences and in all projects for which contract is to be awarded in the Nigerian oil and gas industry subject to the fulfilment of such conditions as may be specified by the Minister of Petroleum Resources.”
He lamented a situation whereby government sabotage Nigeria law to satisfy foreign investors, while the IOCs also influence the choice of Nigeria Minister of Petroleum.
Falana said: “The provisions of the Act may be deliberately sabotaged by a government that is prepared to sign any agreements in a desperate bid to please foreign investors. A situation whereby the IOCs are allowed to influence the appointment of the Minister of Petroleum Resources and the management staff of the regulatory bodies in the oil and gas industry must stop.
“In other words, the operators in the oil and gas industry must not regulate themselves. The law is quite comprehensive in scope. There are 107 Sections of the Act. For proper comprehension of the legislation by workers, both the NUPENG and PENGASSAN should summarize and publish the provisions pertaining to the employment of workers in the oil and gas industry.”
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