Mixed reactions trail recently passed PIB bill
By Oghale Mafuru
Coming on the heels of the signing into law of the much anticipated Petroleum Industry Bill (PIB) by President Muhamadu Buhari, the bill has received both knocks and kudos from Nigerians.
Speaking to MARKETING EDGE during an opinion poll, economic expert, Aligo Ugo while commending the rationale behind the bill as it addresses salient issues in the Oil and Gas industry, particularly the upstream and downstream sector, decried the neglect of host communities as their concerns were not taken into cognisance in the bill.
According to him, “ There will now be a defined rule of engagement for all stakeholders, particularly the IOCs and marketers. The bill will give some level of autonomy and it will help to define rules. You don’t have to breach the contract. You have to act according to the premise of the law. It sets policy guidelines for all stakeholders”.
Commenting on the agitations of the host communities, the economic expert said giving the host communities 3% allocation is too meagre considering the deplorable impact of oil exploration in these communities.
Mr. Ugo said: “That is too small for them because you are mining the resources from their land. They are saying, you must develop our land. Nigeria is largely mono-economy with dependence on oil. This oil comes from the Niger Delta.”
Reacting to the recently passed bill, elder statesman and economic analyst, Chief Julius Babogha stated that the PIB bill did not address the grey areas in the Nigerian polity which will have adverse impact on the economy.
According to him, the bill “only reveals the high degree of disdain the North has for the south. This is an unfortunate situation. I don’t foresee any economic growth from the draconian bill but the wish to enslave the people of Nigeria”.
He added that, “The bill will further impoverish the people of the host community, it will create distrust among the people, it will be like throwing a few grains among broods of hens”.
The Petroleum Industry Bill which consists of five distinct chapters, including Governance and Institutions; Administration; Host Communities Development; Petroleum Industry Fiscal Framework; and Miscellaneous Provisions comprising 319 clauses and 8 schedules was passed by the National Assembly in July 15 after defying passage by previous Assemblies for over the last twenty years.
The Chairman of the Joint Committee on Downstream Petroleum Sector; Petroleum Resources (Upstream); and Gas on the PIB Sabo Mohammed Nakudu during the presentation of Committee’s report at the Senate said the bill if passed and assented Into law, it would strengthen accountability and transparency of NNPC limited as a full-fledged company under statutory/regulatory oversight with better returns to its shareholders and the Nigerian people.
President Buhari signed the bill into law on Monday 16th August.
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