PIB Delay: Nigeria Loses $80bn

L-R: Enugu State Governor, Ifeanyi Ugwuanyi, his Abia State counterpart, Governor Okezie Ikpeazu, Deputy Senate President, Senator Ike Ekweremadu and Governor David Umahi of Ebonyi State, during South-East Stakeholders’ meeting in Enugu on Sunday.

The unnecessary delay in the passage of the Petroleum Industry Bill (PIB) has cost Nigeria a whopping $80billion in foreign direct investments.
The Chairman, Trade Union Congress (TUC), Rivers State chapter, Comrade Chika Onuegbu, who disclosed this in Port Harcourt, said that the delay in the passage of the bill an evil wind unleashing many negatives on the nation’s economic growth and development.
Onuegbu noted that the oil and gas industry requires a clear policy direction to drive investments capable of offloading billions of dollars into the country’s economy.
He regretted that with no clear cut policy focus, and lack of commitment by the Federal Government to resolve various issues associated with funding of the joint venture operations in the oil and gas sector, investors would naturally foot-drag on investment decisions aimed at pumping funds to boost the economy and create much-needed jobs for the people.
Onuegbu lamented that successive governments have been playing politics with the many challenges facing the industry, and urged the 8th National Assembly to make haste to pass the new Petroleum Industry Bill.
He challenged the National Assembly to access the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) PIB Committee Report, as according to him, it would help the members in properly navigating the debate process and passing an acceptable bill for all stakeholders.
Onuegbu complained that the copy of the new PIB is titled: “Petroleum Industry Governance and Institutional Framework Bill,” before the National Assembly has no provision for fiscal framework, refinery operations and host community funds, which he argued, “negates the PIB’s main purpose to provide for governance and institutional framework for the petroleum industry and other issues connected therewith”.
He added that the massive crude oil theft and pipeline vandalism in the Niger Delta region and elsewhere were severely undermining of Joint Venture (JV) operations and negatively affecting the fulfilment of cash call obligations by the Federal Government to oil producing companies.
According to him, “the Federal Government owes cash call arrears of $5billion to its JV partners and mandatorily forced a 40 per cent reduction in JV-approved programme as at mid last year,” adding that the JV funding challenges have worsened this year due to low oil prices.
The TUC chairman estimated that “between 300,000 to 400,000 barrels of crude oil are stolen daily through oil theft and pipeline vandalism, leading to loss of $1.5billion monthly”.
He noted that the above issues were some of the factors militating against the economic growth of the state and country, and appealed the Federal Government to boldly address them to salvage the nation.

Susan Serekara-Nwikhana