Non-Passage Of PIB Forestalls Downstream Deregulation

Delay in the passage of the Petroleum Industry Bill (PIB) will continue to put on hold the deregulation of the downstream resulting to the drain of government’s income through the subsidisation of petroleum products in the country.

This was the position of Senator Lee Maeba, the former Chairman, Senate committee on Petroleum Resources Upstream while delivering a paper entitled, “Implications of Delay in Passage of The Petroleum Industry Bill” at a conference organised by the National Association of Energy Correspondents (NAEC) in Lagos recently.

Senator Maeba explained that the downstream sector of the Petroleum industry cannot be deregulated without the passage of the PIB into law adding that the economy will remain in coma without deregulation as no investment would be drawn into the country by oil and gas investors.

He reasoned that the PIB, if passed, would fasten the deregulation of the downstream in the country as private investors can come in to do business.

According to him without deregulation, oil business will grow in the country and the sector will remain the way it is.

He said another implication of the delay in the passage of the PIB is the likely return of community agitations, but if the bill is passed it will protect and enhance the host communities to have a good working relationship with oil companies doing business in their land so that they can operate freely.

The senator also said non-passage of the  PIB places limitation on the implementation of the Nigeria Content Act as it cannot be active because local content issue cuts across the whole of the oil and gas industry, stressing that “Nigerian Content cannot function well without a robust PIB; a new law that will replace the Petroleum Act of 1969, the oil industry cannot move. Nigerian content even if passed will be dependent on a legislation that can not support its aggressiveness.”

On the fast track approach to the PIB, he said before he left the Senate they did an amendment to section 111 which allows the business to continue the way it is.”

“I believe that section 111 of the Senate Rule was amended to ensure that the new Senate can continue with the bill the way they met it and pass it the way it is without further amendment. So I believe that the PIB that was laid and remained laid should be passed without further delay,” the former Senate Committee Chairman on Petroleum resources upstream urged.

Vivian-Peace Nwinaene