Oil
Don’t Politicize PIB – Alison-Madueke
ABUJA – The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has urged stakeholders in the Oil and Gas Industry not to politicize or personalize the Petroleum Industry Bill currently before the National Assembly, stressing that the bill is geared towards providing a win-win scenario for all stakeholders in the petroleum sector.
Mrs. Alison-Madueke made this submission Thursday at the National Assembly during the two-day public hearing by the Senate Joint Committee on the PIB in Abuja.
The Minister averred that the responsibility for the exercise of the powers proposed in the Bill for the President and Petroleum Minister will ultimately rest on any administration in power at the time and so should not be personalized.
She argued that it was important for the law to sufficiently empower any administration to act in the best interest of the Nigerian people, stressing that the provision empowering the President and the Minister of Petroleum Resources is not about her or the President as it is not likely that the present administration will be in power when the law gets to full implementation in the years ahead.
“By the time the PIB is fully articulated and implemented the current President and Minister of Petroleum Resources will no longer be in office. This Bill takes a while before it is operational. She stressed that the proposed transition period after the passage of the Bill is at least three years. Note, there are over 80 regulations to be made for this Bill to be operational,” Mrs. Alison-Madueke stated.
According to her, whilst we take best practices from other developed regions, we should also work within the understanding of our own socio-economic and social-cultural norms, and create entities and policies that will work and are not destined to fail from the word-go.
She further stated that contrary to the impression that the PIB granted enormous powers to the Minister of Petroleum Resources, it should however be noted that the powers vested on the Minister by the Bill are not different from those vested on the Minister’s counterparts by the petroleum laws of the United kingdom, Malaysia and Norway, stressing that the powers granted the Nigerian Minister by the PIB is less than those of her counterparts in the laws of advanced petroleum producing countries.
Mrs. Alison-Madueke noted that the PIB establishes a flexible fiscal regime that will increase government take and yet encourage investment in the petroleum sector saying it allows for production-based incentive system which in the long run will accommodate every player in the industry.
Addressing the concern on the multi-faceted regulatory bodies for the PIB, the Minister said this is basically as a result of the complex nature of the industry adding that an unwieldy, mammoth entity that hosts two complete separately run organizations is not a mode of efficiency but the disaggregated regulatory system would enable speedy response to variety of issues that may arise from time to time.
On the issue of the Host Communities, the Minister noted that it was established to mitigate the human and environmental conditions in the region and to assuage the feelings of the host communities towards oil and gas companies.
Mrs. Alison-Madueke stated that the PIB seeks to establish a legal, fiscal and regulatory framework that will revolutionize the Petroleum industry in Nigeria stressing that it intends to create a standard business practice, protect health, safety and environment in the course of petroleum exploration and enhance exploration and exploitation of petroleum in Nigeria.
Declaring open the public hearing, the Senate President David Mark said the National Assembly was anxious to pass the PIB and urged all the stakeholders to make objective submissions that would create a win-win situation for the Federal Government, the International Oil Companies and other operators in the petroleum industry.
It would be recalled that the PIB was based on the report of the Oil and Gas Reform Implementation Committee (OGIC) set up by the Federal Government thirteen years ago to carry out a comprehensive reform of the oil industry.
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.
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.
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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