The first version of the PIB made its way into the National Assembly in 2008, but got truncated in the sixth and seventh sessions of the National Assembly.
To bypass the entrenched politics that has dogged the passage of the bill over the years, the eighth Senate decided to break the bill into two components with the one passed on Thursday, comprising governance side of the contentions bill.
The second section of the bill, comprising the host community fund and the fiscal aspect of the bill is currently at the first reading stage in the Senate.
The PIGB 2017 passed on Thursday unbundled the Nigerian National Petroleum Corporation (NNPC) into two new commercial entities, while also setting three new entities to manage the oil industry.
According to the bill, the NNPC would be unbundled into two commercial entities, the National Petroleum Company (NPC) and the National Assets Management Company (NAMC), which would come under the supervision of a one-stop-shop regulatory agency to be known as the
Petroleum Regulatory Commission (PRC).
Chairman of the Senate Committee on Petroleum (Upstream), Senator Tayo Alasoadura, who presented the bill for the final passage, said the bill was seeking to promote transparency and accountability in the administration of petroleum resources in Nigeria as well as foster a conducive business environment for petroleum industry operations.
He also stated that the host community fund and fiscal aspect of the bill would be treated by the National Assembly in two separate segments at a later date.
While addressing newsmen in the Senate, Senator Alasoadura stated that his committee worked “assiduously and tirelessly to ensure that we consider this bill within a short period of time.”
He said the report of his committee on the bill “proposes a slim, focused yet robust framework for effective institutional governance of the Nigeria Petroleum Industry.”
He said the bill was seeking to enhance the creation of an independent one-stop-shop regulatory agency with the unbundling of the NNPC.
“We have streamlined and sharpened the role of the minister. We have also enhanced the extensive reform of NNPC into two limited liability companies -the National Petroleum Company and Nigeria Petroleum Assets Management Company to ensure efficient and effective commercial performance. In carrying out our assignment, we have ensured that the major lapses associated with prior institutional frameworks have been remedied.”
Senate President, Dr Bukola Saraki, who presided over the sitting, said its passage amounted to a clear manifestation of the intention of the eighth Senate to open up the petroleum sector and by extension, the economy by promoting transparency, efficiency and profitability for the government and players in the sector.
When the bill, PIGB comes into effect, a new regulatory agency to be called Nigeria Petroleum Regulatory Commission (NPRC) would take over the functions hitherto performed by the Petroleum Inspectorate (PI), the Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA).
According to the bill, the PRC would absorb the present Department of Petroleum Resources (DPR), PPPRA as well as the Petroleum Equalisation Fund (PEF) into one agency.
It defines the PRC as an agency that “shall be the industry regulator and watchdog responsible for licensing, monitoring, supervision of petroleum operations, enforcing laws, regulations and standards across the value chain.”
The bill states that the decision to bring the agencies under one umbrella was “to ensure efficient and effective commercial performance in the petroleum sector.”
It also states that the objectives include “create efficient and effective governing institutions with clear and separate roles for the petroleum industry, establish a framework for the creation of commercially-oriented and profit-driven petroleum entities that would ensure value addition and internationalisation of the petroleum industry, promote transparency and accountability in the administration of petroleum resources of Nigeria and foster a conducive business environment for petroleum industry operations.”
Other key aspects of the new bill include the provision contained in Section 26(3) which indicates that the regulatory agency shall be entitled to a commission of 10 per cent as cost of collection of revenues from other commercial agencies.
The bill states that: “The commission shall establish and maintain a fund (the Fund) from which all expenditures incurred by the commission shall be defrayed. The NPRC is also empowered by the bill to spend 10 per cent of what it generates for its operations.”
APC commends Senate
The National Working Committee of the All Progressives Congress (APC) commended the Senate over the passage of the bill (PIB).
The party, in a statement signed by its national publicity secretary, Bolaji Abdulahi, said it was excited with the passage of the PIB.
The statement read in part: “The APC commends the Senate on the passage of the historic PIB which seeks to introduce reforms that would ensure greater transparency and accountability in the Nigerian oil and gas industry.
“The party notes that the bill had languished in the various chambers of the National Assembly for about 12 years, but it took the purposeful and dedicated APC-led Senate to pass the bill.
“We are very excited that the bill was passed today after about 12 years delay. We specially commend the Senate President, Dr Bukola Saraki for his focused leadership of the eighth Senate, which has produced several legislative actions that have positively affected the lives of Nigerians, promoted good governance and advanced ongoing efforts by the APC-led administration to rebuild the country.’’
Reps reject bill on NNPC, promise to pass PIB
However, the House of Representatives, on Thursday, rejected a bill that sought to amend the NNPC Act to stipulate legislative approval for budgetary expenditure and borrowing plan of the corporation.
The bill, entitled: “A bill for an Act to amend the Nigerian National Petroleum Corporation Act, Cap N123, laws of the federation of Nigeria, 2004 to stimulate legislative approval for budgetary expenditure to enhance financial and fiscal discipline in the conduct of transactions by the Nigerian National Petroleum Corporation and for other related matters (HB. 571),” was sponsored by Honourable Raphael Igbokwe.
The bill was dropped because it was said to be in conflict with the Fiscal Responsibility Act 2007 which had already stipulated that NNPC and other listed revenue agencies should submit their budget to the Minister of Finance for onward transmission to the National Assembly.
The sponsor of the bill, in his argument, said he sponsored the bill to bring the NNPC Act in conformity with the FRA 2007.
According to him, NNPC only submitted its budget to the Presidency, noting that lots of Ministries, Departments and Agencies of government did not bring their budget to National Assembly because the Act establishing them said they should submit it to their minister for onward transmission to president.
Speaker of the House, Honourable Dogara, asked that “why do you want to address the NNPC only? What happened to the other agencies?”
The Minority Leader, Honourable Leo Ogor, in his argument, said he agreed with the spirit of the bill, but disagreed with the amendment because of the Fiscal Responsibility Act 2007.
Also, Honourable Mohammed Monguno advised that the bill should be withdrawn because of inconsistency.
When the bill was put to voice vote by the Speaker, it was rejected by majority of the lawmakers.
Meanwhile, the House has promised to pass the PIB that will stand the test of time.
Deputy chairman, House Committee on Media and Public Affairs, Honourable Jonathan Gbwefi, while speaking with newsmen, said the House would ensure passage of the bill.
We will not rest until PIB is passed into law —PENGASSAN
Oil and gas workers in the country have reiterated their resolve not to rest on their oars until the PIB is passed into law by the National Assembly.
According to the president of Petroleum and Natural Gas Senior Staff Association of Nigeria(PENGASSEN), Mr Francis Olabode Johnson, the workers had been involved in various engagements while the nation awaited the passage of the bill which was envisaged to improve and reform the oil and gas sector.
Speaking at the fifth triennial Warri Zonal Delegates Conference of PENGASSAN in Asaba, the Delta State capital, on Thursday, Mr Johnson said the workers were in support of the efforts by government to ensure that the four state refineries worked at optimal capacity even as they welcome invitation to investors in the refineries.
Mr Johnson, therefore, called on the government to carry the association along in the process that would lead to bringing the refineries on stream.
“In the face of this security challenges, we urge all our members to be extra vigilant in protecting themselves from security threats,” he said.
In his lecture derived from the conference theme “Union: a tool for fostering organization growth and stability” Tajudeen Atanda Bello of the Petroleum Training Institute Effurun, Delta state observed that the existence of harmonious interactions between labour unions and employers in the work place was essential for high productivity, and ultimately growth and stability of the organization.
According to him, resolution of conflicts reinforces the confidence of the workers and encourages them to work harder towards attainment of organizational growth and stability.
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