President Muhammadu Buhari has painted a regretful picture of how Nigeria had lost a whopping $50 Billion over the last ten years as a result of Foot- dragging in the passage of the Petroleum Industry Bill.
“We are all aware that Past Administrations have identified the need to further align the industry for global competitiveness, but there was lack of political will to actualize this needed transformation.
“This lack of progress has stagnated the growth of the industry and the prosperity of our economy. In the past ten years, Nigeria has lost an estimated US$50billion worth of investments due to uncertainty created by the non-passage of the PIB.”
The President, in his remarks before finally passing the Bill, known as Petroleum Industry Act 2021 today, said that the passage marked decades of uncertainty and under-investment in the petroleum industry.
“As part of this administration’s commitment to building a competitive and resilient petroleum industry that will attract investment, improve our revenue base, create jobs and support our economic diversification agenda.
“As a Nation that depends on oil resources for the development of other sectors, Nigeria runs a Petroleum Industry that is governed largely by laws enacted over 50 years ago such as the principal legislation; the Petroleum Act of 1969 and other obsolete legislations.”
President Buhari believed that the passage of the Petroleum Industry Bill will help Nigeria to attract investments across the oil and gas value chain.
“In view of the value our Nation and investors will derive from a stable fiscal framework for the oil and gas industry, our Administration has found it necessary to work with the two Chambers of the National Assembly to ensure the passage of the PIB.
“The Presidential assent of the Petroleum industry bill on 16th August 2021 to “Petroleum Industry Act 2021” marked the beginning of the journey towards a competitive and resilient petroleum industry that will attract investments to support our Economic Recovery and Growth Plan.
He said that the Act would create a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation.
The Act, the President added, would provide for a direct benefit framework that will enable sustainable development of Host Communities.
He appealed to the host communities to look carefully at the contents of the Bill which in the implementation will bring real and lasting benefits to them.
Buhari said that the Act also provides for deliberate end to gas flaring which would facilitate the attainment of Nigeria’s Nationally Determined Contributions of the Paris Agreement through a funding mechanism to support gas flare out project in host communities.
“Similarly, it acknowledges global energy transition and made necessary provisions for NNPC to invest in renewable energy.
“To consolidate the commitment of this administration to delivering the value proposition of this law, I have approved an implementation framework commencing immediately to ensure the industry envisaged in the new law begins to take shape.
“The implementation process to be headed by the Hon Minister of State, Petroleum Resources is hereby tasked with the completion of the implementation of this act within 12 months.
“I am therefore directing all relevant Ministries, Departments and Agencies of government to fully cooperate in ensuring the successful and timely implementation of this law.”
The President commended the leadership of the 9th Assembly for their continued pursuit of our national aspiration and demonstration of mutual harmony with the Executive in the pursuit of a patriotic outcome in the passage of the PIB.
He also commended the entire team in the executive that worked tirelessly to ensure the delivery of this strategic legislation for our country, even as he thanked Nigerians and other industry stakeholders for their contributions and support in achieving this historic landmark.
