Business
As PIB Undergoes Public Hearing
The Petroleum Industry Bill (PIB) fully called “A Bill for an Act to Provide for the Establishment of a Legal, Fiscal and Regulatory Framework for the Petroleum Industry in Nigeria” has remained in the Nation’s Parliament for over two decades now. And there are still doubts in the minds of Nigerians if this all important bill could be passed into law before the seventh assembly elapses.
On March 7, however, the bill passed its crucial second reading on the floor of the Senate, not without a heated debate that involved an unprecedented 81 Senators of the 109-member Senate. This is not a surprise as the bill which holds the hopes, fears and the complexities of the over 250 ethnic groups that make up Nigeria was at the stage where most bills meet their cul-de-sac.
The PIB is a bill that contains all the requirements that apply to the entire petroleum industry in Nigeria as the title clearly states. It covers matters such as petroleum administration, royalties and taxes, ladding procedure, environmental obligations, employment business opportunities and technical requirements. It is a combination of 16 different Nigerian Petroleum laws in a single transparent and coherent document.
The original concept of the PIB is to provide strong basis for the renewal of the Nation’s Petroleum Industry based on international best practices. It is meant to establish a new framework for the good governance of the oil industry with increased petroleum revenues for the country and as well open a new window of opportunities for Nigerians.
In legislative drafting, for a law to command acceptability, it has to address the issues that gave rise to the need for that law. It has to be in consistence with existing laws on the issue. It should also make provision for what constitutes violation of that law, prescribe punishment and also put in place the mechanism for enforcement.
Despite the scrutiny it has gone through, there are some grey areas in the bill that call for serious concerns, according to stakeholders.
During the debate on the general principles of the PIB, almost all the Senators disagreed on the sweeping power proposed for the Minister of Petroleum Resources which makes the Minister be above all oversight and fiscal control. Senator Ita Enang representing Akwa Ibom North-East was quoted as saying that “The powers and functions vested in the minister are excessive and should be reviewed so that the institutions established and statutory powers conferred can operate with minimal interference and conflict from the minister.
He, therefore, advised that caution should be taken in the definition and assignment of function to the minister as the need may arise in the future to split the functions and powers of the ministry under the petroleum industry to two or three ministers and even for gas; amending the Act may not be necessary then before it could be effected.
Also, Senator George Akume, Senate Minority Leader and former governor, Benue State in an interview said one of the concerns of the Senators from the North was the menacing powers vested on the Minister of Petroleum Resources by the bill. Industry watchers see this overriding power to the minister as a ploy to enrich some influential members of the society which is what the bill is meant to curb.
In addition, one area that created a divide between the South-South and Northern Senators is the 10 per cent Petroleum Host Communities (PHC) fund.
The Northern Senators feel that additional 10 per cent to the existing 13 per cent derivation fund would impoverish the states that have no oil.
According to Senator Akume, “what is important here is the fact that they already have the 13 per cent derivation. Of course, they also have the Niger Delta Commission and the Ministry of Niger Delta. All these are designed to create an atmosphere that is very conducive and that would provide succour to the majority of people from the Niger Delta.
Overwhelmed by the weight of over 50 years of neglect, 10 per cent PHC fund and 13 per cent derivation can barely meet the needs of oil bearing communities. Exclusion of indigenes of oil bearing communities from participation in the oil-economy like owning of oil blocs, has forced the people to resort to illegal refining of crude, which is costing the country 500,000 barrels of crude per day.
Besides, comparatively, there are discrepancies in the provisions for the host communities in the PIB and the Nigerian Minerals and Mining Act 2007. In the PIB, an oil licence or lease can be granted without putting into consideration the closeness of the said field to the communities. Whereas, the Mining Act gives adequate consideration to the lives of the host communities.
Section 3 (1)(c) of the Mining Act provides that, “no mineral title granted under this Act shall authorise exploration or exploitation of mineral resources or the erection of beacons on or the occupation of any land-occupied by any town, village, market, burial ground or cemetery or archaeological site, appropriated for a railway or sited within fifty meters of a railway or which is the site of or within fifty meters of any government or public building, reservoir, dam or public road.
Also in section 102 of the Mining Act, the right of the owner of the property is recognised by giving the owner the right to determine the rent. The section partly provides that “the minister, before granting a mining lease on any private or any state land should require the owner or occupier of the land, to state in writing within the period specified by the regulation, made under the Act, the rate of annual surface rent which the owner desires should be paid to him by the lease for the land occupied or used by it for or in connection with its mining operation.”
Therefore, as the House of Representatives Committee on PIB commences public hearing on the PIB across the country and the subsequent public hearing by the Senate, it is imperative that all Nigerians nay the Niger Delta who wear the shoes and know where they pinch should take advantage of the opportunity which the public hearing offers to see that their interests are protected.
The Nigerian Content Development and Monitoring Board (NCDMB), in partnership with a firm, Sweetcrude Ltd., has announced detailed selection criteria for the inaugural “Champions of Nigerian Content Awards”, designed to honor outstanding contributions to local content development in Nigeria’s oil and gas sector.
The Tide learnt that the event, scheduled to hold 21st May, 2025, at the NCDMB’S content tower headquarters in Yenagoa, capital of Bayelsa State, will recognize individuals and organizations that have demonstrated exceptional commitment to advancing Nigerian Content in 2024.
The Tide further gathered that the ceremony will coincide with the Nigerian Oil and Gas Opportunity Fair (NOGOF), which promises to spotlighting industry excellence and contributions to national economic transformation.
A statement by the Board’s Directorate of Corporate Communications and Zonal Coordination says the event has 12 Award Categories, which include, “Nigerian Content Icon of the Year”, “Nigerian Content Lifetime Achievement Award”, “Nigerian Content International Upstream Operator of the year”, and the “Nigerian Content Independent Upstream Operator of the year”.
Others are, “Nigerian Content Midstream Operator of the year”, “Nigerian Content Downstream Operator of the year”, “Nigerian Content International Service Company of the year”, Nigerian Content Indigenous Service Company of the year”, and the “Nigerian Content Innovator of the year”.
Also included are, “Nigerian Content Financial Services Provider of the year”, “Nigerian Content Media Organization of the year”, and “Women in Leadership Award for Promoting Gender Equality and Empowerment”.
According to the NCDMB, the criteria for oil and gas operators will include key and empirical benchmarks such as Production output for crude oil and gas volumes, Compliance with Nigerian Content Plans (NCPs) and Nigerian Content Compliance Certificates (NCCCs).
Other criteria are adherence to NOGICD Act reporting requirements, such as submission of Nigerian Content Performance Reports and Employment & Training Plans.
The Board’s statement added that similar criteria will apply to financial institutions, media organizations, and individuals, ensuring a transparent and merit-based selection process.
“Winners for the Nigerian Content Icon of the Year, Innovator of the Year, and Women in Leadership Award will also be selected based on measurable performance indicators.
“The Advisory Committee of Industry Titans will Oversee the process to uphold the prestige of awards. The Committee consist of distinguished experts set up to oversee nominations and validate winners”, the NCDMB said.
Members of the committee, according to the Board, include: Pioneer Executive Secretary of the NCDMB, Dr. Ernest Nwapa; Secretary-General, African Petroleum Producers Organization, Dr. Omar Farouk; and former Zonal Operations Controller, DPR, Mr. Woke Akinyosoye.
The Statement quoted the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, as emphasizing that the awards aim to becoming the oil and gas sector’s equivalent of the Oscars, celebrating genuine impact rather than mere participation.
“This recognition is reserved for those who have gone beyond compliance to drive tangible growth in Nigerian Content.
“With a focus on credibility, compliance, and measurable impact, the Champions of Nigerian Content Awards is poised to set a new standard for excellence in Nigeria’s energy sector”, the NCDMB Executive Scribe said.
By: Ariwera Ibibo-Howells, Yenagoa
Nigeria’s apex Banking institution, Central Bank of Nigeria (CBN), has declared that Federal Government’s debt servicing increased to N696billion in January 2025.
The CBN’s recently published Economic Report revealed a precarious fiscal position, which worsened in January 2025 as debt servicing obligations exceeded total retained revenue by a wide margin.
According to the report, the Federal Government’s debt servicing obligations for the month stood at N696.27bn, while total retained revenue amounted to only N483.47bn, indicating that debt service alone consumed about 144 per cent of all government earnings.
This development highlights the growing debt burden and dwindling fiscal space facing Africa’s largest economy.
According to the report, despite slight improvements in some revenue categories, the retained earnings were grossly inadequate to cover obligatory debt repayments, exposing the government’s continued reliance on borrowing to meet basic obligations.
The report further revealed that retained revenue in January 2025 only recorded a marginal 0.89 per cent increase when compared with the N479.21bn generated in the corresponding month of 2024.
”FGN retained revenue declined in the review period, owing largely to lower receipts from Federal Government Independent Revenue and FGN’s share of exchange gain.
“At N0.48tn, provisional FGN retained revenue was 69.19 and 70.40 per cent below the levels recorded in the preceding period and monthly target, respectively”, it revealed.
While this points to stagnation rather than growth, the marginal rise was wiped out by the overwhelming debt service obligations.
The retained revenue components showed that the Federation Account contributed N167.69bn, while the VAT Pool Account delivered N90.73bn.
By: Corlins Walter
The Federal Government has announced plans to commence the payment of the outstanding N35,000 wage award arrears owed workers in the Federal Civil Service.
A statement issued by the Office of the Accountant-General of the Federation (AGF), which was signed by the Director of Press and Public Relations, Bawa Mokwa, said the outstanding arrears will be paid in instalments, with workers set to receive N35,000 per month for five months.
It clarified that the first tranche of the wage award arrears would be released immediately after the April salary payment.
“The wage award arrears was not paid with the April 2025 salary; it will come immediately after the salary is paid”, the statement read.
The Federal Government had earlier disbursed wage awards to federal workers for five months as part of efforts to cushion the impact of economic reforms. However, five months’ arrears remained unpaid.
The AGF office further reiterated the government’s commitment to fully implementing all policies and agreements relating to staff remuneration and welfare, noting that such efforts were geared towards enhancing productivity and operational efficiency across ministries, departments, and agencies.
The N35,000 wage award was introduced in 2023 as a palliative measure to support workers following the removal of the petrol subsidy and other economic adjustments.
In January this year, the Federal Government assured workers that it would clear the arrears of the N35,000 wage award, just as it also said the government had resumed the payment of the wage award.
The government also reiterated its commitment to addressing issues in the National Minimum Wage agreement reached with the Organised Labour in 2023.
The Minister of Labour and Employment, Nkeiruka Onyejeocha, had disclosed the government’s commitment towards implementing agreements with trade unions during separate meetings with the leadership of the Trade Union Congress and Congress of University Academics, in Abuja.
The Nigeria Labour Congress had criticised the Federal Government over the delay in the payment of the minimum wage for certain workers in the federal civil service.
Also, the Federal Government had earlier blamed the delay in payment on the prolonged approval of the 2025 budget.
By: Corlins Walter
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