Senate Begins Phased PIB Debate …Denies Working Against Buhari

Finally, there seems to be light at the end of the tunnel for the Petroleum Industry Bill (PIB) as the Senate has commenced batch-by-batch consideration and passage of the Bill with the first batch scaling through second reading.
The first batch of the bill read a second time basically spells out the governance and industrial framework for the Nigeria’s oil industry while the second batch, according to the Senate President, Bukola Saraki, would deal with the host community funds and other financial components of the Bill.
The bill sponsored by Senator Donald Alasoaudura is titled, “A Bill For An Act To Provide For The Governance And Institutional Framework For The Petroleum Industry And For Other Related Matters 2016”, and is co-sponsored by 28 senators.
In his lead debate, Alasoaudura said the objective was to create an efficient and effective governing institution with clear and separate roles for the petroleum industry.
Alasoaudura said the bill seeks to establish a framework for the creation of commercially-oriented and profit-driven petroleum entities that ensures value addition and internationalization of the petroleum industry, and when passed, will ensure transparency and accountability in the administration of Nigeria’s petroleum resources; and foster a conducive business environment for petroleum industry operations.
In his contribution, Senator James Manager, noted that oil discovery in the Niger Delta has been a blessing to the world, and Nigeria in particular, but a curse to the people of the region.
He pointed out that the region tells only story of devastation and exploitation, and lamented that the golden hen that lays the golden eggs should not be taken for granted, hence the need for the 10 per cent revenue allocation for oil host communities.
Manager urged his colleagues to overlook the primordial sentiments that frustrated the passage of the bill since it was first introduced in the Sixth Senate, even as he commended the Senate leadership for the decision to split the bill into batches.
Senator Barnabas Gemade said the oil producing countries have robust, efficient and effective legislations guarding the operations within the individual countries, and hoped that the bill will redress the anomaly.
“And this has been to their advantage but Nigeria has become an exception, and we have seen the adverse effects of lack of proper legislation to guide the petroleum industry in this country.
“Every investor wants to know what is happening legally within the environment it wants to invest. It wants to know the dos and don’ts, it wants to know the opportunities because you can calculate the opportunities, you can’t calculate the risks if you don’t know what is happening legally within a given system, like what is obtainable in our petroleum industry as we speak”, he said.
Provisions of the bill include that NNPC be split into two companies; the Nigeria Petroleum Assets Management Company (NPAM) and a National Oil Company (NOC).
According to the bill, NOC will be an “integrated oil and gas company operating as a fully commercial entity”, and will run like a private company.
The company will as well keep its revenues, deduct costs directly and pay dividends to the government, thereby putting an end to the era of waiting for federal allocation for funding and always failing to meet cash call obligations.
President of the Senate, Bukola Saraki, had announced the immediate need for the consideration of the batch providing for the host community funding.
His words, “Before we proceed into the finalization of this part of the bill, the committee must come with a bill regarding the issue of the host communities for discussion. And I think that that can be done within the next four weeks before we come back for clause-by-clause consideration of the bill.
“We must bring the bill here on community issues and frontiers so that we can also pass it into second reading and commit it to the committee. I think it would be fair to create an understanding that the purpose of this bill is to send the message that truly, as a Senate, we are committed to ensuring that we create that enabling environment for this sector”.
The bill was later referred to Senate Committees on Petroleum (Upstream and Downstream) and that of Gas for more legislative inputs within the next four weeks.
Meanwhile, the Senate of the Federal Republic of Nigeria has debunked reports in some quarters that it may have been working against the interest of the Presidency.
Leader of the Senate, Aliyu Ndume, made this remark on behalf of the Senate yesterday while reacting to a newspaper publication.
In the said publication, the Minister of Budget and National Planning, Barr Udo Udoma, was quoted as saying the Senate should be held responsible for the failure to meet October target for the consideration of 2017 budget.
Citing Order 42, 52 and 15 of the Senate standing rules, the leader said the minister has been invited to appear before him to throw more light on the document he submitted relating to the 2017 budget but he failed to appear.
“In this Senate, we have the opposition that is cooperating with us. We are also the majority who make the government, so we are not working against the government”, the Senate leader added.
On his part, the Senator representing Akwa Ibom North-East, Albert Bassey, said he had personally confronted the minister, who is his own “brother” and that he denied making such remarks, adding that he was quoted out of context by the media.
In his ruling, the Senate President, Bukola Saraki also confirmed that he got across to the minister as soon as he saw the said publication and he (minister) did promise to retract the statement through subsequent publications.
He, however, cautioned both the executive and the legislature not to go into blame game but work towards nation building.
Saraki, therefore, assured the Presidency that the Senate would commence considerations of the budget as soon as the document required is provided by the minister.

Nneka Amaechi-Nnadi, Abuja