Opinion
The Forces Against PIB
When the Draft Petroleum Industry Bill (PIB) was produced by the Oil and Gas Sector Reform Implementation Committee (OGIC) and approved by the National Council on Privatisation (NCP) in July, 2005, many Nigerians felt that the right step had been taken for the growth and development of the oil and gas industry in the country.
But even with the excitement that greeted the draft bill, it was only after the late Alhaji Umaru Musa Yar’Adua had emerged as President in May 2007 and reconstituted the OGIC under the chairmanship of Dr. Rilwanu Lukeman that action was concluded on the Bill which was later sent to the National Assembly (NASS) for consideration and passage into law.
Now many years have past since the Bill was forwarded to the National Assembly, but it is still all rhetoric.
In his keynote address delivered on the occasion of the consultative forum for all stakeholders on the proposed Petroleum Industry Bill, the former Petroleum Minister, Dr. Rilwanu Lukeman said: “The PIB represents the largest overhaul of the government petroleum revenue system in the last four decades. This overhaul has four central objectives: To simplify the collection of government revenues, to cream off windfall profits in case of high prices, to collect more revenues from large profitable fields in deep off-shore waters; and to create Nigerian employment and business opportunities, by encouraging investment in small oil and gas fields”.
Apparently, the bill when passed into law would encourage private investments in the industry and make information about licenses, leases, contracts, etc easily available to persons interested in the petroleum and gas business in the country. This is in line with the belief of the current Petroleum Minister, Mrs Diezani Alison-Madueke, who said in a lecture on the Nigeria’s Petroleum Industry some months ago in Lagos that one of the major benefits of the bill is that it would achieve transparency in the oil and gas industry in the country. According to her, “The oil and gas industry has been characterized by too much opaqueness, extreme level of confidentiality. This Bill would remove opaqueness in the scale that has never been seen. Data would be accessible for interested individuals”.
Besides, it is hoped that the bill would achieve the objectives of aligning the oil and gas industry to international best practices. And it would also enhance governance practices and procedures, re-inforce linkages between the oil and gas industry and other sectors of the Nigerian economy, establish a fiscal framework that is strong in the interest of Nigeria, and support the energy objectives of the federal government.
From all indications, the Bill when passed into law will establish clear rules, procedures, and institutions for the administration of the petroleum industry in the country and improve its general efficiency and effectiveness.
In fact, it has been reported that President Goodluck Ebele Jonathan has also realised that the Bill is critical to the growth and development of the Nigerian nation.
So, if the Bill is a critical factor in the country’s journey to becoming a strong and self-reliant nation, why has it taken this long to be passed into law? What are the forces against the bill?
The travail of the bill has been blamed on several factors including the despicable moves by the international oil companies (IOCs) and other beneficiaries of the perverse and shady deals in the oil and gas sector to sabotage all efforts at making the proposed law see the light of the day.
It has also been alleged that the Bill has been tinkered with by some conspirators against its passage. This has injected confusion into the process of passing the bill which is said to now have several versions in the hands of the Nation Assembly members.
The Nigerian National Petroleum Corporation (NNPC) and its supervising ministry have also been accused of being too attached to the bill. As alleged, the two bodies have been seeking fundamental changes to the Bill after it (the Bill) had been approved by the Federal Executive Council. The changes being proposed by NNPC and the Petroleum Ministry are said to have further deepened the confusion regarding the passage of the Bill into law.
There is also the question on whether the bill has adequately addressed the core concerns of the Niger Delta region.
These concerns have long been known. Despite its tremendous natural resources base that has continued to serve as an engine of growth and development for the Nigerian state, the region has remained poor, backward, and neglected. Its potential for sustainable development has remained unfulfilled and its future is being threatened by environmental degradation and deteriorating economic conditions which are not being sufficiently addressed by past and present policies and actions.
The region is also concerned about the insensitivity of the oil companies, loss of traditional occupation of the people, dispossession of natural right to ownership of the oil-bearing communities by the Nigerian State, and the total exclusion of the indigenes from most management functions of virtually all sections of the oil industry.
So, there is also pressure by the Niger Delta people that, in the spirit of fair play, equity, and natural justice, these concerns should form the major plank of the Bill before it is passed into law.
I think, the time has come for President Jonathan to clear the hurdles on the way of the Bill. But it should be noted that without the Niger Delta and its petroleum deposit, the Nigerian nation would not contemplate having any Petroleum Industry Bill or law.
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