11 Benefits Of Petroleum Industry Governance Bill Passed By Saraki

The 8th Senate of Federal Republic of Nigeria, passed the Petroluem Industry Governance Bill. This is indeed a great development and right step in bringing sanity to the Petroluem Industry. The PIB has been before the National Assembly for over 17 years. President of the Senate Dr, Abubakar Bukola Saraki promised at the beginning of his tenure as Senate President that he would break the jinx.

Below are benefits of the PIGB

1. It will create a conducive business environment for petroleum operations

2. Enhance exploitation and exploration of petroleum resources in Nigeria for the benefit of Nigerians

3. Optimize domestic gas supplies, especially for power generation and industrial development

4. Encourage investment in Nigerian petroleum industry

5. Optimize government revenue

6. Establish profit-driven oil entities

7. Deregulate and liberalize the downstream petroleum sector

8. Create efficient and effective regulatory agencies

9. Promote the development of Nigerian content in the oil industry

10. Protect health, safety and the environment in petroleum operations.

11. PIB will lead to the establishment of the Nigeria Oil and Gas Investment Pact Scheme will ensure that components of industry equipment can be manufactured locally

KEY IMPLICATIONS/OBJECTIVES TO NOTE FROM THE ABOVE

– More jobs for Nigerians – as it will become illegal to employ foreigners for certain skills that can be sourced locally

– Where such skills are sourced from abroad due to unavailability locally, a local understudying the expat is a requirement

– The above is applicable not only to skill, but to materials sourcing

– The above means more jobs for Nigerian local contractors, especially those from the oil producing regions

– Gas is still under-focused in Nigeria and the potential from this source of energy lays untapped. PIB seeks to maximize this. If well explored, this will boost power supply in Nigeria

– Government revenue from oil industry will increase. This means more funds in the hands of government to engage in developmental activities, ideally

–  The downstream sector becomes fully deregulated. In other words, subsidy will be totally removed

– Environmental protection – what Saro Wiwa and co fought for, and the initial grudge of the Niger Delta militancy – will be addressed to a large extent- WHO OWNS THE OIL?The PIB vests ownership and management of all petroleum resources, offshore or onshore, in the Federal Government of Nigeria, which manage them on behalf of all Nigerians.

– This means irrespective of where the oil is found, it belongs to the government of Nigeria. Of course, equity calls for special consideration for localities where the resources are mined. This is taken care of by the Revenue sharing laws and other provisions of this Bill like the Host Community Fund.