As you all know that the House has adopted the Petroleum Industry Bill (PIB). On Thursday, the House Committee considered the report of the ad hoc PIB Committee and adopted the bill. The report was presented on Wednesday by Mohammed Monguno, Chairman of the Ad hoc Committee (APC, Borno).
In less than 20 minutes, the 318 provisions of the measure were adopted. The passage was not dramatic, as Idris Wase (APC, Plateau) of the deputy speaker did not recognize the members who were seeking to raise points of order.Now, what do you know about the new Nigeria’s Petroleum Industry Bill, PIB? I guess you might not understand how it benefits the common man in Nigeria but below are the 10 Key points about Nigeria’s Petroleum Industry Bill, PIB that is being debated recently
1. Why are we in need of PIB?
The PIB is important since nearly all oil regulations, including the 1969 Oil Act, have been delayed throughout the decades. In other words, they are no longer relevant and globally competitive. With technical progress, oil price volatility, and climate change influencing the driving forces of the world economy, it is essential to evaluate existing legislation to bring it into line with present reality.
2. What are the main aims?
The bill seeks to develop excellent governance, best practices, and the industry by clarifying the duties and responsibilities of authorities and institutions, enabling border investigation, enhance environmental compliance mandates, and make the NNPC a financially viable company.
3. What is Bill for Oil Industry, PIB?
The Petroleum Industry Bill, PIB, 2020, is new legislation aimed at introducing major reforms to the petroleum and gas industry in Nigeria. It was initially submitted to the National Assembly in 2008.
4. What are the PIB environmental concerns?
To award a license or lease, all licensees or oil companies must make a financial contribution to the Environmental Remediation Fund to rehabilitate or manage negative environmental effects concerning the license or leasing before the approval to the environmental management Plan. The financial contributions depend on the scale of the petroleum operations and the severity of possible environmental damage.
5. What about the Development Trust of Host Communities?
The PIB also provides for the creation of a trust for host communities to develop. The oil operators, characterized as settlers, are compelled to create a trust in favor of the host towns and are required to make an annual contribution based on a specified proportion of their annual operating costs.
6. What might the public expect in the weeks ahead?
The public should expect the House of Representants to end work on the PIB, followed by a joint session between the Senate and the representatives before President Buhari receives the PIB.
Only if the licensed operator has no capacity or is unable to undertake any rehabilitation or management of any harmful environmental impact will the regulator apply the Fund to the rehabilitation, remedial operations, or management of negative environmental impacts efficiently.
7. Why did the previous governments fail to legislate on the PIB?
It has not been enacted by prior administrations due to several issues, particularly politics, sectional interests, and lack of political will.
8. Why is it feasible to pass?
Moreover, the commitment of President Muhammadu Buhari, the host communities, and the petroleum and gas operators has been increased. Conversations about the Host Communities Trust Fund have turned to community representations, the form of the fund, and equity stakes, unlike in the past when community issues were universally criticized.
9. What should be expected of regulatory institutions?
The proposed bill proposes that the Upstream Regulatory Commission provide petroleum exploration permits for upstream operations. The petroleum exploration license shall be renewable for a period of three years and may be subject to the defined conditions for an additional period of 3 years. The PIB also provides for the setting up of the Regulatory Authority for Midstream and Downstream operations. However, only one Commission with several sections, using the example of the Nigerian Communications Commission (NCC), was urged to preside.
10. So, when is it going to become a law, and what impact should be expected?
The PIB is now sure to become law this year. It will restructure the institutions, attract local and foreign investors and increase openness and accountability in the petroleum and gas business.