Dr. Emmanuel Ibe Kachikwu, Minister of State for Petroleum |
Reports that the Federal Government had rechristened the Petroleum
Industry Bill (PIB) as Petroleum Reform Bill (PRB) is tragic in the extreme.
That is a pointer to the fact that indeed some shadowy stakeholders seem
hell-bent on sabotaging passage of a bill that is at the heart of reviving the
mainstay of the Nigerian economy – oil and gas exploration business. Besides,
what is in a name that seems to have foreclosed the prospect of passing the
bill in its original form? It is also unclear which version of the bill has
been renamed since there have seen many versions of the most retouched bill
since 1999 when this republic began.
It makes no sense that after more than a decade since
the bill was first presented to the National Assembly (NASS), what Nigerians
are getting is a cosmetic change of name, instead of passing it. There is no
fundamental difference between what the PIB and PRB should contain unless there
are some hidden agenda to distort the original objectives. This whole idea is
curious and most people will see it as diversionary and the goal is to delay it
till the end of this session of the National Assembly in 2019.
Besides, there is a sense in which it can be said that
the same powers that would not like the petroleum industry to be reformed for
operational efficiency, accountability and profitability are again working hard
to sabotage its passage. The same bill had twice been passed and two former
presidents had refused to sign it into law. This is unconscionable. The PRB bill to be presented to the NASS shortly will
effectively obliterate the original PIB. And there is no way the PIB and all
its provisions would be the same as the PRB.
Those behind the PRB have a different idea that they
should table before the people that elected them. Whereas there is yet no
formal announcement about the PRB, Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, had during
the 10th international conference of the Nigeria
Gas Association (NGA) hinted at this when he reportedly referred to the PIB
as PRB. According to the Minister, government was in the process of completing
draft legislation on the Petroleum Reform Bill, which would address
institutional regulatory reforms necessary for the petroleum sector. The former
NNPC GMD had then noted that the bill would capture the key positions including
the current gap in the Petroleum Act by providing clear rules for the
exploration, development and utilization of gas.
Other issues the bill seeks to address include gas
flaring, gas pricing and providing the basis for gas licensing activities
throughout the gas value chain. Ahead of the new bill, Dr. Kachikwu had also
hinted that the vision of the sector “is to build an attractive gas-based
industrial nation, with attention given to meeting local gas demand and
developing significant presence in the international market.” The priority of
government, he had added included utilization of natural gas for domestic needs
of the power sector. The minister further disclosed that plans were afoot to
establish an Independent Petroleum
Regulatory Authority through which government would execute its regulatory
mandate.
The fundamental objective of the PIB is “to vest oil and
gas resources in the sovereign state of Nigeria”. That amounts to changing the
existing order, whereby, the oil, which is virtually vested in foreign
interests, is made open for local participation. Getting Nigerians to be more
involved in oil is the crux of the PIB. At present, while foreigners are
reaping the oil benefits, Nigerians are sidelined despite the existence of the Local Content Act and Petroleum Technology Development Fund
(PTDF).
The key issues in the original PIB should not be removed
without consultation with the people. Except these key issues are retained, the
PRB would just be a camouflage without anything to offer Nigerians. Therefore,
the Buhari administration should not make a mess of the bill under any guise
because it is strategic to national planning and development. Most prosperous
oil-producing countries in the Middle East and South America have settled their
petroleum reform laws. It is unfortunate that state actors in Nigeria always
fall short of expectation when it comes to developing state institutions for
the public good. They would rather subsume public interest in their enlightened
self-interest. This is insufferable.
This is a moment of truth. Apart from corruption in the oil sector that has made the PIB vulnerable, it has also been held down by two factors, namely, the international oil companies (IOCs) and the North. Whereas the IOCs want the status quo to remain to continue their domination, the North has been uncomfortable with some of the clauses in the PIB, especially, those giving concessionary benefits to the oil communities. The controversial northern interest has reportedly divided the National Assembly.
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