PIGB: FG underscores transparency for Nigeria’s fiscal prosperity

The Ministry of Petroleum Resources has said it is currently working assiduously with the House of Representatives to provide an adequate pathway for passage of the Petroleum Industry and Governance Bill (PIGB) and the Fiscals Bill at the lower house.

The PIGB, which has been passed by the Senate, is indeed in line with the Transparency and Efficiency key focus area of the 7BIGWINs initiatives.

The 7BIGWINS initiative is a roadmap of short and medium term priorities aimed at developing a stable and enabling oil and gas investment landscape launched by  President Muhammadu Buhari in October 2016.

It portrays plans to create the governing institutions with clear and spate roles and establish frameworks for creation of commercially viable petroleum entities, that will eliminate bureaucratic bottlenecks which discourage investors, hinder our growth, and prevent the country from attaining the summit of performances.

Speaking at the recently concluded National Conference organised by the Association of Energy Correspondents of Nigeria  (NAEC), Minister of State for Petroleum Resources, Dr Ibe Kachikwu stated that other countries where oil revenues have been of humongous benefits, a single regulation exists.

Kachikwu who was represented by Deputy Director, Department of Petroleum Resources  (DPR), Mr Olumide Adeleke, stated that “this single regulator regulates the upstream, midstream and downstream aspects of its petroleum resources. A single regulator provides a one-stop shop for investors; it removes duplicate procedures and its associated costs and therefore attracts foreign direct investments in the nation’s oil and gas sector.

“In Nigeria today, the situation is such that foreign direct investment flows into the country are at high cost. An example is the high cost of production of oil at about $32 per barrel. Initiatives to reduce the cost of crude oil production to $15 per barrel are on-going; initial consultations with stakeholders have held and cost drivers have been identified. The outcome of this initiative would be a win-win for investors and the nation.”

Meanwhile, the Group Managing Director, NNPC, Dr Maikanti Baru, who was represented by the Managing Director of National Engineering and Technology Company (NETCO), Mr Siky Aliu, also gave an insight into the oil industry post-PIGB.