Politics
As Jonathan’s PIB War With NASS Rages…
In the heat of insecurity in parts of the northern part of
Nigeria, and sundry distractions,
President Goodluck Jonathan seems obviously bent on accomplishing one of his
major pre-2011election promises – to end chronic power shortage in the country.
And he intends to do this by ensuring that the Petroleum Industry Bill (PIB) is
passed in its present state.
But with the lawmakers in the National Assembly (NASS)
picking holes here and there in the PIB, particularly with what they see as
undue powers given to the Petroleum Resources Minister, Diezani Alison-Madueke
and the President, this seems unlikely.
The lawmakers are particularly vexed because from their
perspective, besides giving too much power to the Oil Minister, Jonathan’s
committee also added a clause in the new draft that permits the President to
unilaterally give oil licenses out. This they consider as both powers beyond
the President, and a usurpation of the powers of the legislature.
The question, therefore, is will the PIB have a better
outing in the NASS this time around when the parliament return from recess in September?
What with the determination of rebellious lawmakers to test President
Jonathan’s resolve to push the bill through the way it is?
In a recent interview with Reuters, most of the lawmakers
minced no word in saying that the PIB, which had been stuck in the parliament
since 2008 when it was introduced by the late President Umaru Musa Yar’Adua-led
federal government, will not have an easy ride come September.
From the perspective of President Jonathan, if the bill is
passed, it could restore his presidency, which had been seriously battered by
Islamist insurgency in the north, an abortive attempt to remove a popular fuel
subsidy and a raft of corruption scandals since winning the election last year
April. His team had thus made it clear that they expect a swift passage of the
draft he had signed off on.
In the words of the West African analyst at Control Risks,
Roddy Barclay, “As a President who came to power with a landmark reform agenda,
the passage and in implementation of the PIB will provide a key gauge of
Jonathan’s performance in office.
“Having suffered numerous damaging public scandals in recent
months and making headway on his key piece of legislation would go some way to
restoring his international standing”.
The President’s explicit endorsement of the bill gives it a
better chance of passing compared to previous versions, but his increasingly
tense relationship with parliament means that he is likely to have to concede
some ground or face embarrassing delays.
While speaking to Reuters, spokesman for the House of
Representatives, Zakari Mohammed, puts it thus: “We will not be subjected to
pressure to pass the PIB. It will not get a speedy passage but a thorough
passage”.
Another member of the lower House, who spoke to Reuters
anonymously, painted a better picture of the imminent tug of war awaiting the
debate on the PIB when he said ‘we’ve seen the powers given to the oil minister
in the PIB and there is no way we’re going to allow our heritage to be handed
over to any individual. We want this to pass and it will, but not just the way
the President and the oil minister want”.
The apparent disagreement between the Executive and
Legislature not-with-standing, a section of Nigerians believe that the
misunderstanding could also turn out to be the best thing that can happen to
the country in the face of suffocating corruption and distrust in the Nigerian
system.
For Clement Nwankwo, a Director at the Policy and Legal
Advocacy Centre in Abuja, “this unfavourable sentiment towards the President
and oil minister may actually be positive towards giving Nigeria a reasonably
acceptable PIB”.
The questions thus arise: why the hullabaloo over what would
better the lives of Nigerians? And Who benefits by this prolonged imbroglio?
The original PIB as presented to the NASS in 2008 was
designed to force Nigeria’s oil sector to conform more closely to international
norms. The fiscal terms of oil production were to be amended in order for the
government to collect more revenue while the state-owned Nigerian National Petroleum
Corporation (NNPC), distinctly lacking in accountability, was to have its
regulatory powers removed. These would be entrusted to the commercial sector.
However, it seems the bill has been greatly watered down.
The restructuring of the industry as proposed by the PIB
would see the establishment of the National Petroleum Commission, which would
be run by a board chaired by a federal minister. It will have the overriding
responsibility of formulating policies for the administration of the industry.
The bill states categorically that the commission under the
Act “shall have power to coordinate the activities of the petroleum industry
and exercise overall supervisory functions over petroleum operations and all
the institutions of the industry.”
It also provides for the creation of some agencies out of
the present Nigerian National Petroleum Commission, while it would transform
into the National Oil Company.
The PIB is expected to bring root and branch reform to an
industry that produces 80 percent of government revenues but has been plagued
by corruption and mismanagement for decades.
The wide-ranging bill would change working terms for major
oil companies like Shell and Exxon and partly privatise the national oil firm,
but has been held up as government, oil firms and other key benefactors argue
over terms under various guises, mostly guided by selfish interest.
This widely believed to have been given credence by the fact
that heading President Jonathan’s reform team is Diezani Alison-Madueke. She is
the Minister of Petroleum Resources and also a former director of Shell
Petroleum Development Corporation. This employment history is seen as being
capable of potentially posing a conflict of interests.
The same interest comes to the fore when it becomes glaring
that some aspects of the bill are being contested by international oil
companies. They include areas that have to do with tax regimes that tend to put
more burdens on such companies and make them more responsible in the way they
do business in Nigeria. Captured under the Nigerian Hydrocarbon Tax, operators
would be required to pay taxes on gas products separately as against what it is
now.
Close observers of the industry believe that Shell is one of
the biggest beneficiaries of the murkiness of Nigeria’s oil sector. The attempt
by the sixth National Assembly (2007-11) to pass the Petroleum Industry Bill
was allegedly cut short due to movements by international oil companies.
In 2010, for instance, leaked United States diplomatic
cables quoted Ann Pickard, then Vice-President of Shell for Africa, boasting
about how Shell encouraged employees to infiltrate all relevant government
agencies.
Secondly, while some sections of Nigerians suggest that the
expected reforms would convert NNC into a profit centre, this may perhaps
amount to being overly optimistic because as long as the NNPC remains an
appendage of the executive government and an epicentre of patronage, this
change may not be plausible.
While baring his mind on the bill, Chairman of the Senate
Committee on Petroleum (Downstream), Senator Magnus Abe, said it should not be
a surprise that a revolutionary piece of legislation like the PIB is attracting
this kind of resistance in the legislature.
According to him, “There is no way you will make such a revolutionary
reorganisation of the oil industry in this country without going through
challenges. I think it will be naïve of any Nigerian to think so. I know for a
fact that there are a lot of interests: economic interests, political interests
and social interests that are tied to the oil sector.
“In dealing with a subject like the petroleum industry bill,
which seeks to reshape the industry, recreate it and remake it on a commercial
basis, we will take out a lot of the waste and the unnecessary patronage that
is currently associated with the industry, and I don’t think that we can
achieve that without some level of turbulence and challenges.”
One way out of the mess in the oil sector, he continued, is
for the National Assembly to “put the interest of Nigeria first, finding a
common ground and passing a law that would enable the petroleum industry to
develop for the benefit of the people.
“I know that oil industry players would have their own
interest, which they would like to see written into the law; but we are
Nigerians, the resources belong to us and it is the interest of our people that
we should promote over and everything else.
“We also have to remember that in promoting the interest of
our people, we must make sure that those who participate in the industry can
get fair returns for their investments because if they don’t get it, then even
trying to get something for your own people will be useless.
“It is not rocket science. There are existing models in
other societies that they have used and it is working and has worked very well.
You can even take the case of Malaysia, we have Petronas; in Brazil, you have
Petrolbraz and the Libyan Oil Company.
“All these are reformed oil sectors that have resulted in
the national oil companies themselves becoming major economic and big time
players in the industry. They are even investing in other societies outside and
bringing home profits from their investments.
“But instead, our own NNPC is a source of debt, a source of
patronage, is a source of waste; it is a source of mismanagement of the oil
industry. So the PIB is supposed to take care of all that and any time you want
to change something that people are benefiting from, there is bound to be
challenges. You know that that is always the case, people don’t give away their
benefits,” Abe said.
President of the Senate, David Mark, has also promised that
the bill would be given due attention once it comes before the Senate, noting
that “the problem with the PIB was that when it showed up, there were so many
versions. As many as three or four versions were in the hands of senators and
members of the House of Representatives.”
He however said, “If we are to build the sector, we have to
get the bill off the ground and this is why it is necessary for cooperation
between the legislative and the executive.”
If the Chambers are so determined, then, an end to this long
journey seems near. One certainty is that whatever the bill looks like at the
end of the day, passing it would at least end the uncertainty that had
prevented Nigeria from holding an oil licensing round for over five years.
Again, if it is passed with the sole interest of the
Nigerian populace at heart, it will not only attract investment into natural
gas in the country, but also be the beginning of an end to chronic power
shortages. This is obviously the kind of legacy President Jonathan would want
to bequeath to future generations of this great country.
In a statement issued on Wednesday, December 31, 2025, and signed by its National Publicity Secretary, Mr Obiora Ifoh, the party said it had taken note of Mr Obi’s defection alongside some of his supporters, as well as what it called a “lacklustre speech” delivered by the former Anambra State governor at the defection event.
“We wondered what new he intends to sell to Nigerians,” the party said, adding that it was not surprised by the move, having “since September 2024, parted ways with Peter Obi and some of his blind supporters in the National Assembly.”
According to the statement, the faction said it had patiently awaited Mr Obi’s exit, describing it as a blessing.
“The party is finally liberated by this defection and as party leaders, we count it as a blessing,” the party said.
The faction further disclosed that it had previously urged Mr Obi and his supporters to leave if they were unable to work with the party leadership.
It claimed that several lawmakers had been suspended for anti-party activities and that similar action would have been taken against Mr Obi but for the intervention of “some well-meaning Nigerians.”
It also blamed its internal crisis on Mr Obi and Abia State Governor, Dr. Alex Otti, accusing them of sponsoring what it described as an insurrection against the Julius Abure-led leadership.
“The crisis we had in the Labour Party was caused by Peter Obi and the Abia State governor, Alex Otti,” the statement alleged, adding that it was surprising Dr Otti had not followed Mr Obi out of the party despite his suspension.
Reacting to Mr Obi’s defection event in Enugu, the faction claimed the gathering was largely boycotted by prominent political and traditional institutions in the South East, insisting that those present were “political spent forces who cannot win in their wards should there be an election today.”
It warned that this development signalled the failure of any future Mr Obi presidential or vice-presidential ambition, claiming he had “clearly lost the charm that had endeared him to the people prior to 2023.”
The faction also accused Mr Obi of misleading the South East during the 2023 elections, alleging that the region suffers political marginalisation under President Bola Tinubu’s administration as a result.
“He must be told that the South East lost out completely in President Ahmed Tinubu’s government because they trusted and believed in him in 2023,” the statement said, alleging disparities in ministerial appointments and infrastructure allocation to the zone.
The Abure-Led LP apologised to Nigerians for its decision in the last election.
“We gave Nigerians a candidate we thought was good for the nation in 2023, but time has since proved that we made the greatest political mistake. We plead for forgiveness from Nigerians,” the party said.
It urged Nigerians to watch out for a rebranded Labour Party, promising to present “the best prospect” capable of returning Nigeria to what it described as its “glorious days.”
steadily toward unity, justice, and shared prosperity”, he said.
Speaking to journalists on Wednesday at his country home in Ikere-Ekiti, Dr Oluyede said the development came as a shock, stressing that INEC supervised and monitored the PDP governorship primary that produced him as the party’s candidate.
According to him, INEC officials documented the process, completed all required forms, and even affirmed his candidacy in court through sworn affidavits arising from cases linked to the primary election.
He maintained that no court order or injunction currently restrains INEC from listing his name as the PDP candidate, arguing that the electoral body lacks the constitutional power to determine who emerges as a party’s nominee.
Dr Oluyede described such decisions as the exclusive responsibility of political parties, not the electoral umpire.
While playing down panic over the released list, Dr Oluyede noted that electoral processes often involve reviews and corrections.
He disclosed that he had commenced wide consultations, including engagements with PDP leadership and formal correspondence with INEC, to seek clarification on the omission and determine the next line of action.
The PDP candidate assured his supporters across Ekiti State that he would appear on the ballot, expressing confidence that the situation would be resolved in his favour.
He described attempts to exclude candidates from elections as dangerous and undemocratic, warning that such tactics undermine the people’s right to freely choose their leaders.
Dr Oluyede called on the people of Ekiti to reject any form of disenfranchisement, insisting that elections should be contests of ideas, records, and acceptance by the electorate rather than exclusionary maneuvers.
He also declared that the PDP in Ekiti had resolved its past internal crises and was now united, focused, and ready to win the forthcoming governorship election.
He urged party members and supporters to remain calm and focused, expressing optimism that, with divine grace and the will of the people, the PDP would emerge victorious at the polls.
Mr Obi spoke while formally declaring for the African Democratic Congress (ADC) at a well-attended event in Enugu on Wednesday, where he outlined what he described as a fresh roadmap for rescuing the country from its socio-economic challenges.
Addressing party members, supporters and other stakeholders, the former governor stressed that leadership must be driven by integrity and accountability, warning against the culture of double standards in public office.
“We cannot continue to deceive our people. Leadership is about telling the truth and leading by example. You cannot promise one thing in public and do another in private. That is not leadership, and that is not the change Nigeria needs”, Mr Obi said.
He maintained that genuine national rebirth would only be possible if entrenched wrongs were corrected, adding that governance must be guided by competence, discipline and a clear sense of purpose.
Mr Obi also underscored the need for fresh thinking in the nation’s political space, urging political actors to move away from recycled ideas that have failed to deliver sustainable development.
“We must come with new ideas,” he said, adding that “Nigeria’s problems are not mysterious; what has been lacking is the courage and competence to address them differently. We need a new approach that puts people first and focuses on production, not consumption.”
Calling for a broad based political collaboration, Mr Obi appealed to parties and stakeholders across ideological divides to work together in the national interest.
“This country is bigger than any party or individual. All parties must come together to change the present trend. What matters is not the platform, but the future of Nigeria and the wellbeing of its citizens”, he declared.
Looking ahead to the 2027 general elections, Mr Obi challenged aspirants seeking elective offices to ensure transparency in their credentials, warning that the era of falsified certificates was drawing to a close.
“Anyone contesting for any position in 2027 must come with genuine certificates. All the machinery is now in place to verify what is genuine and what is not. Integrity must start from the very foundation of leadership”, he stated.
Drawing lessons from international development models, Mr Obi cited Rwanda and Indonesia as examples of countries that rose from difficult beginnings to become thriving economies through disciplined leadership and sound policies.
“These countries were once behind us,” he noted, adding that “Today, they are moving ahead because they chose competent leadership, clear vision and policies that support local production and human capital development.”
He also criticised the economic policies of the present administration, particularly the continued importation of food items that can be produced locally, describing such practices as inimical to national development.
“You cannot grow an economy by killing local production. Importing food that we can produce in Nigeria destroys jobs, weakens our farmers and drains our foreign exchange. A serious country must produce what it consumes”, he argued.
The event featured renewed calls from ADC supporters for sustained engagement and mobilisation, as Mr Obi reiterated his belief that Nigeria remains redeemable if led with honesty, competence and a commitment to shared national progress.
In his remarks, the National Chairman of the ADC, Senator David Mark, expressed confidence in the emerging coalition, assuring Nigerians that the party would deliver good governance at all levels of administration if entrusted with power.
The gathering also witnessed the defection of several prominent politicians from different political parties across the South-East and beyond.
The motion endorsing the defection was moved by a former Deputy Speaker of the House of Representatives, Chief Emeka Ihedioha, and seconded by former economic adviser to ex-President Olusegun Obasanjo, Prof. Osita Ogbu.
Goodwill messages from notable political figures, including Senator Enyinnaya Abaribe, Mrs. Aisha Yesufu, Chief Sam Egwu, Dr. Okwesilieze Nwodo, Chief Achike Udenwa, Mr Onyema Ugochukwu and Senator Gilbert Nnaji among others, further underscored the growing momentum within the ADC.