President of the Senate, Dr. Abubakar Bukola Saraki, has said that the
three new Petroleum Industry Bills (PIB) being considered by the Senate
will boost economic growth and lead to a more efficient oil sector that is
Saraki who stated this while declaring open a 3-day public hearing on the
Petroleum Industry Bill (PIB), organized by the Senate Joint Comttee on
the PIB, said the three bills under consideration would have tremendous
impact on the economy and investment opportunities when passed into law.
The bills, according to a statement by the Chief Press Secretary to the
President of the Senate, Sanni Onogu, in Abuja, include the Petroleum
Industry Administration Bill 2018, Petroleum Industry Fiscal Bill 2018 and
the Petroleum Host and Impacted Communities Bill 2018.
Recall that the Senate recently passed the Petroleum Industry Governance
Bill (PIGB) which is now before the Conference Committee of both chambers
The objective of the Petroleum Industry Administration Bill, according to
the President of the Senate, is to transform the administration of the
upstream, midstream and downstream sectors of the Nigerian petroleum
He said: “Firstly, the Bill creates a framework that will free up acreages
that are not being developed by current license and lease holders, thereby
creating opportunities for new investors. This will bring substantial new
investment to our oil and gas industry.
“Secondly, it ensures effective management of the environment by petroleum
operators and administrators.
“Thirdly, it provides a framework to unleash midstream activities which
will open up the market for the supply of gas and other downstream
products, for economic growth. Above all, I believe the most important
feature of this Bill is that it provides much needed legal backing for the
deregulation of our downstream petroleum sector,” he stated.
He noted that the Petroleum Industry Fiscal Bill, aims to fix the
anomalies in the nation’s existing fiscal framework for the petroleum
industry which is outdated, especially with regards to royalty and tax
“For instance, billions of dollars have been lost through non-invocation
of provisions in subsisting laws, at those times when crude oil price
crosses certain thresholds,” Saraki said. “The Bill will fix this as well
as remove difficulties and uncertainties surrounding our tax assessment
and collection system.”
He added: “Additionally, it will remove distortions created by the
Associated Gas Framework Agreement; and provide comprehensive fiscal terms
for the development of our abundant natural gas resources.
“Perhaps the most critical objective of the Petroleum Industry Fiscal Bill
is that it will enhance our international competitiveness and make Nigeria
a choice destination for oil and gas investors,” he stated.
The Petroleum Host and Impacted Communities Bill, according to him,
provides for a legal framework for the development of the petroleum host
and impacted communities.
“It is a pan-Nigeria Bill that will cater for communities that are hosts
to upstream assets, as well as significant midstream and downstream assets
“The Petroleum Host and Impacted Communities Bill is unique because it
overcomes the pitfalls of past efforts; and is structured to bring funding
for the development of host communities, under the direct control of the
“We expect the Bill to make for greater harmony and partnership among the
various stakeholders in the sector. I urge everyone to pay particular
attention to presentations by representatives of host communities,” he
He stated further that the bills are critical to the growth of the
nation’s economy, the livelihood of all Nigerians and the interests of
“We have the task of delivering these Bills which, together, will enhance
the growth of our oil and gas industry, modernise our fiscal system and
enhance competitiveness, while creating harmony for all stakeholders,” he