Opinion
That Petroleum Industry Bill
When the Draft Petroleum Industry Bill (PIB) was produced by the Oil and Gas Sector Reform Implementation Committee (OGIC) and approved by the National Council on Privatisation (NCP) in July, 2005, many Nigerians felt that the right step had been taken for the growth and development of the oil and gas industry in the country. But even with the excitement that greeted the draft Bill, it was only after Alhaji Umaru Musa Yar’Adua had emerged as President in May 2007 and reconstituted the OGIC under the chairmanship of Dr. Rilwanu Lukeman that action was concluded on the Bill which was later sent to the National Assembly (NASS) for consideration and passage into law.
Now years have past since the Bill was forwarded to the National Assembly, but it is still all rhetoric. In his keynote address delivered on the occasion of the consultative forum for all stakeholders on the proposed Petroleum Industry Bill, the former Petroleum Minister, Dr. Rilwanu Lukeman, said: “The PIB represents the largest overhall of the government petroleum revenue system in the last four decades. This overhall has four central objectives: To simplify the collection of government revenues; to cream off windfall profits in case of high oil prices; to collect more revenues from large profitable fields in the deep off-shore waters; and to create Nigerian employment and business opportunities, by encouraging investment in small oil and gas fields.”
According to him, the Bill will achieve the objectives of aligning the oil and gas industry to international best practices. And it will also enhance good governance practices and procedures, re-inforce linkages between the oil and gas industry and other sectors of the Nigerian economy, establish a fiscal framework that is strong in the interest of Nigeria, and support the energy objectives of government enshrined in the seven point agenda.
To Dr. Lukman, the Bill establishes clear rules, procedures, and institutions for the administration of the petroleum industry in Nigeria and reflects the changing dynamics of the industry worldwide.
In recognition of the prospect of the Bill to propel the Nigerian economy to prosperity, the new petroleum minister, Mrs. Diezani Alison-Maduekwe has been pushing the proposed law for a quick approval by NASS. In a lecture held last week in Lagos on the Nigeria’s Petroleum Industry, she said: “The PIB is long and in-depth bill, a historic, critical and extensive Bill encompassing the 16 hitherto existing laws with the oil and gas industry. One of the major benefits of this bill is that transparency in the oil and gas industry would be achieved. The oil and gas industry has been characterised by too much opaqueness, extreme level of confidentiality. This bill would remove opaqueness in the scale that has never been seen. Data would be accessible for all interested individuals”. From all indications, the Bill when passed into law will improve the general efficiency and effectiveness of the sector.
It has been reported that President Goodluck Ebele Jonathan has also realised that the Bill is critical to the growth and development of the nation.
So, if the Bill is a critical factor in the country’s journey to becoming a strong and self-reliant nation, why has it taken this long to be passed into law?
The travail of the Bill has been blamed on several factors including the despicable moves by the International oil companies (IOCs) and other beneficiaries of the perverse and shady deals in the oil and gas sector to sabotage all efforts at making the proposed law see the light of the day.
Apparently the hurdles on the way of the Bill are being cleared by President Jonathan’s administration. And as indicated by Mrs. Alison-Maduekwe, expectations are high that the Bill would be ready for the President’s signature by next month.
But whether the Bill is based on the best legislative and administrative instruments and principles governing the petroleum industry across the world or provides the needed panacea for Nigeria’s development problems, it must be seen to address the core concerns of the Niger Delta region.
These concerns have long been known. Despite its tremendous natural and human resources base that has continued to serve as an engine of growth and development for the Nigerian nation, the region has remained poor, backward, and neglected. Its potential for sustainable development has remained unfulfilled and its future is being threatened by environmental degradation and deteriorating economic conditions which are not being adequately addressed by past and present policies and actions. The region is also concerned about the insensitivity of the oil companies, loss of traditional occupation of the people, dispossession of natural right to ownership of the oil bearing communities by the Nigerian state, and the total exclusion of the indigenes from most management functions of virtually all sections of the oil industry.
Daily, terrible changes are being effected in the various elements of the physical environment of the Niger Delta. And both in the short and long run, we must expect some drastic consequences to result from these changes being caused by the mindless activities of the oil companies that have interferred with and disturbed the purely natural environment of the Niger Delta. Whether these changes will take the localised form of destructive landslides, wiping out the oil bearing communities, flood, or induced regional earthquake, only time will tell.
It should be noted that without the Niger Delta and its petroleum deposit, the Nigerian nation would not contemplate having any Petroleum Industry Bill or Law.
Therefore, in the spirit of fair play, equity, and natural justice, these concerns and the resolution of the development dilemma of the Niger Delta should form the major plank of the Petroleum Industry Bill, not just the abracadabra principles, legal, and regulatory framework, and institutions and sale of oil and gas which nature has graciously endowed the region with.
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