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Nigerian parliament vows to pass PIB

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Nigerian Parliament in session

…tasks NEITI on transparency, accountability


By Joseph BAMIDELE
LAGOS-THE uncertainty generated by the lack of a comprehensive all inclusive legal frame work to guide oil and gas operation in Nigeria has led to an unanimous resolution by the House of Representative to ensure that the Petroleum Industry Bill, PIB be passed.
Deputy Speaker of the House of Representatives, Hon Emeka Ihedioha dropped this hint in Lagos Yesterday on Nigeria Extractive Industries Transparency Initiative, NEITI’s stakeholder’s engagement on PIB.
He said the procedure of passing bills in the House includes requirement that bills undergo first and second reading.
“It is at the second reading stage that the general principles of the bills are debated and if passed, is sent to the relevant committee for further legislative action,” Ihedioha said.
On the part of the House, Ihedioha reassured NEITI and other stakeholders the opportunity to make presentations and necessary inputs into the bill during the public hearing in the House.
When passed, Ihedioha explained that is expected to lay a solid foundation for the regulatory, structural, commercial and fiscal framework for the operations of the oil and gas sector in Nigeria as well as drive broader reforms in the sector.
As an agency set up to develop a framework for transparency and accountability in the Nigeria Extractive Industry, the Deputy Speaker said NEITI has a huge stake and great role to play in the PIB.
According to him “Section 4 of the draft PIB provides that in performing their functions and achieving their objectives under this Act, the Agency and Companies established pursuant to this Act shall be bound by the Nigeria Extractive Industries Transparency Initiative Act.”
To  ensure transparency and accountability in the oil and gas sector, Ihedioha stressed that it is a major commitment adding that the House will support the laudable commitment when the bill is being process.
Outlining NEITI responsibilities, the Deputy Speaker said that Section 190 of the draft PIB provides for the Award Process of Petroleum license.
“This places NEITI at the heart of the award process. Subsection 6 therefore, provides that all bids received based on the bid parameters established shall be processed in accordance with the published guidelines and monitored by the Nigeria Extractive Industries Transparency Initiative NEITI.
This provision in the draft bill has clearly assigned a major responsibility to NEITI to protect our collective patrimony. A resource rich nation like Nigeria must enjoy the fruit of her God-given natural resources,” Ihedioha asserted.
He therefore, tasked NEITI to ensure that the benefit due to the Nigerian government, agencies and  the Nigerian people from the oil and gas industry is accrued to them in accordance with internationally accepted principles of transparency, sustainable development and accountability.
It would be recalled that the PIB is one of the major legacies of the Late Yar’Adua administration but the 6th National Assembly could not conclude work on it before the Assembly ended.
The bill was later reintroduced to the 7th National Assembly in July, 2011, within 30 days of commencement of the 7th National Assembly.
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Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.

The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.

The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.

The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.

This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.

These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.

The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.

 

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Business

Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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By Yemie Adeoye

NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.

The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.

“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”

The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.

“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.

Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.

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Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.

Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”

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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.

Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.

We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.

“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.

On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.

 

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