Federal Government on Monday tasked the National Assembly on the need to ensure that the Petroleum Industry Bill (PIB) which is to be passed on resumption from two week recess, address issues bothering on governance structure, host community, oil and gas, royalty and taxes, provision of a favorable environment for future investment and the launching of new projects as well as increasing transparency in the operations of the Nigerian oil and gas sector.
Secretary to the Government of the Federation, Mr Boss Mustapha gave the charge at the one day retreat held in Abuja, at the instance of the House of Representatives’ Northern Caucus, who reiterated renewed commitment to the unity of Nigeria as well as overwhelming support for the passage of the PIB in its present form.
The Caucus also expressed strong advocacy for the need to develop frontier basins across the country in order to expand our resource base.
While applauding the Caucus’ initiative, Mr Mustapha said: “As you are all aware, Petroleum has been a major part of our country’s history, especially in its role to provide the much-needed resources for governance to operate at all levels.
“It is therefore not surprising that issues relating to exploitation, exploration consumption, and export would be of interest to all Nigerians, including the average man who uses it and some of its derivatives for daily living, the community from which it is extracted, the oil companies who exploit it and government that receives revenue for its from its production and consumption.
“As you all know, since December 2008 when the Petroleum Industry Bill was first introduced into the National Assembly, has not been passed into law, majorly because everyone wants his interest to be appropriately captured.
“In line with President Muhammadu Buhari’s desire to leave a lasting legacy by building a sustainable foundation for Nigeria growth, Mr President forwarded a revised Petroleum Industry Bill in September 20, 2002 to the National Assembly. This is with a major aim of safeguarding the long-term macroeconomic stability of our economy.
“The direct connection to the above is the need to reform the oil and gas sector by providing better clarity for all stakeholders; entrenching a domestic gas to power market, increasing oil and gas production while protecting the environment, supporting the economic diversification agenda of the government and improve regulation guiding production sharing contracts.”
“I’m happy to note that the 9th National Assembly has taken up the challenge of bequeathing to Nigerians the Petroleum Industry Bill after more than a decade as this journey started from the 2008, when the Bill was first introduced as a result of a Presidential Committee set up in 2007.
“It is also gladdening that the passage of the Deep Offshore and Inland Basin Production Sharing Contract amendment bill of 2019 serves as a befitting signpost that the National Assembly will deliver on this promise.
“As you finalise the Bill, I would implore you to take a careful look at some of the areas that have proven contentious over time. These include: governance structure to balance community concerns of giving too much emphasis to oil companies and very little to host communities, oil and gas, royalty and taxes, provision of a favorable environment for future investment and the launching of new projects or increasing transparency in the operations of the Nigerian oil and gas sector. Because the truth about it is that every community has claimed that they are not part of what is happening around them.”
“So, if there is increase transparency in the affairs of all the players in the oil and gas sector, we would have very little contentions like critical market reforms needed in optimal exploit exploitation of the untapped potentials of the Nigerian oil and gas sector, and lastly, sustainable use of resources to place Nigeria in readiness for a world economy that is becoming less dependent on fossil oil.
“I will want to pledge government’s continued support to the work of the legislature and to look forward to a Petroleum Industry Bill that will put Nigeria on the path of sustainable economic growth,” he noted.
In his keynote address, Speaker Femi Gbajabiamila described the retreat as not only educative, but a timely productive action in the process of legislative responsibility as members of the House of Representatives.
“The PIB at this moment is one of the most popular legislation before the National Assembly and I believe each and every one of you will be glad to be part of this important history to let us create a legislative framework that will come up.
The Speaker who was represented by the Majority Leader, Hon. Alhassan Ado-Doguwa observed that the 1959 oil and gas section Act which governs the country’s oil and gas industry “is not only obsolete, it’s completely a thrash that cannot be practicable promote our economic development.”
While urging the lawmakers to shun sentiment during the consideration of the bill, he said: “it is the belief of the leadership of the 9th Assembly that our sentiment must be tied to the mutual coexistence of Federal Republic of Nigeria. It is our belief that our diversity should be a source of strength.”
In his goodwill message, Sultan of Sokoto, Alhaji Muhammadu Sa’ad Abubakar commended the lawmakers representing different parts of Northern Nigeria to collectively deliberate on key national issues and take common and informed position in the interest of our great nation, observed that “this type of gathering is rare in our political journey.”
He said: “I am confident that the outcome of this retreat will be positive and in the interest of the stability and prosperity of our great nation. As we all know, our country is passing through multiple challenges and this Government is doing the best it can to improve the situation. But at the back of every effort we make, we must underscore the need to strengthen our national unity, boost our economy to provide employment to our growing youth population.
“Our economy has for more than five decades remained dependent on oil, but today the world is moving away from oil to clean energy, therefore, it is of great importance for the 9th Assembly to treat the PIB as a priority before it is too late.”
He noted that Nigeria is endowed with “abundant hydrocarbon resources but we are yet to fully discover and tap these resources due to suboptimal regulations. We continue to talk about poverty, unemployment and the attendant insecurity while we are sitting on billions of barrels of Hydrocarbon from Sokoto Basin to Chad Basin, and from Gongola to Bida and Benue Troupp Basins untapped.
“We should have a PIB that will encourage massive hydrocarbon exploration in those Frontier Basins, a PIB that will attract foreign investors to bring their funds and develop the resources, a PIB that will guarantee optimum value to Nigerian people and investors, and a PIB that will strengthen Nigerian economy and boost our sense of unity as citizens of one Nation.
“The passage of the PIB will enable Nigeria to commercialise these huge hydrocarbon reserves, to get more funds to develop other sectors of the economy such as Education, Health, Agriculture, Solid Minerals, Technology and Innovation, Manufacturing and Infrastructure before the end of the oil economy.
“I have no doubt that the 9th Assembly under the able leadership of Distinguished Senator Dr Ahmad Lawan, the President of the Senate, will support your efforts by ensuring the passage of the Petroleum Industry Bill in line with your vision and for the benefit of all Nigerians.
“But we should not forget that legislations no matter how good and important they are, cannot function effectively without peace and security. Today, tribal politicians are bent on tearing the fabric of our nation apart under different guises. As patriotic and peace loving Nigerians, we should not fold our arms and watch them destroy our unity. Therefore urge you, as grassroots politicians to continue to support Government efforts in restoring peace and stability across the country as no nation can prosper under chaos.
“All Nigerians must enjoy equal freedom and equal rights to live peacefully and pursue their legitimate businesses in any part of the country they so choose, be it in the market or in the forest.
“We must reject all ill-conceived schemes that are divisive, schemes that are setting Nigerians against fellow Nigerians.
“We must abhor laws that are capable of causing inter-tribal or inter-regional disharmony. All men are created equal and the unity of Nigeria is sacrosanct,” the Sultan warned.
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