Business

As PIB Undergoes Public Hearing

Published

11 years ago

April 15, 2013

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.

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

4 days ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

1 week ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu