Nigerian senate passes petroleum industry governance bill. The house of representative joint committee on the petroleum industry bill 2009, abuja, 30 july. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. The petroleum industry governance bill pigb was passed by the senate on 25 may 2017. The petroleum industry bill pib 20092010 has been touted as the. Issues with the pib before the national assembly passes the pib, these 14 issues must be considered lest we fail to optimize the opportunity to fix nigerias major source of revenue. There is a need for a paradigm shift, diversifying the economic base towards. The petroleum industry bill pib, which was initially proposed in 2008, is expected to change the organizational structure and fiscal terms governing the oil and natural gas industry if it becomes law. The discovery was made by shellbp, at the time the sole concessionaire. What is the petroleum industry governance bill pigb. History of the nigerian petroleum industry oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Coming seven months after its passage by the senate in may 2017, this is a landmark event aimed at the replacement of the obsolete petroleum act of 1969.
This policy brief assesses environmental and other aspects of the petroleum industry. The petroleum industry bill pib, an omnibus law meant to regulate the. E akpofure abstract as a consequence of the illegal dumping of toxic wastes in koko, in the former bendel state, in 1987, the nigerian government promulgated the harmful wastes decree which provides the legal framework for the. Nigerias oil production is hampered by instability and supply. Establishment of commercial entities and the future of the nigerian national petroleum corporation in a bid to reposition nigerias upstream assets and its key assetholding vehicles for selfsustainability and accountability. A key part of the petroleum industry bill pib the petroleum industry governance bill pigb has been passed by the house of representatives hor on 15 january 2018. Nigeria passes major oil reform bill after 17 year struggle. We can only hope for the quick passage of the relevant. Nigerian senate passes petroleum industry governance bill the bill has gone through 5 sessions of the national assembly, beginning from the 4th assembly which was inaugurated in. Establishment of commercial entities and the future of the nigerian national petroleum corporation in a bid to reposition nigerias upstream assets and its key assetholding vehicles for selfsustainability and accountability, the governance bill provides for the creation of.
Senate passes petroleum industry governance bill the. This is the passage of the first fragment of the comprehensive petroleum industry bill pib, which was broken into parts to. Implications of nigerias draft petroleum fiscal policy nevertheless, the nigerian government needs to strike a balance between the countrys drive for increased oil revenue in the short term, and the long term guarantee of revenue from the major players in the industry through taxation. An evaluation of the effect of the proposed fiscal terms on investment in the upstream sector. Originally introduced in december 2008, the bill has undergone numerous revisions and has been the subject of intense debate. If the final petroleum industry bill pib contains strong transparency and accountability provi sions, nigerias oil sector performance. The transformation from fossil fuel to green energy. May 25, 2017 the nigerian senate thursday passed the petroleum industry governance bill, seventeen years after it was first introduced to the national assembly.
Understanding the elements of the petroleum industry governance bill pigb preamble the oil and gas industry have been the pivot on which the nigerian economy has depended for decades. The nigerian petroleum industry bill pib, which is currently being discussed in parliament, aims at reforming the oil industry. The petroleum industry bill pib, an omnibus law meant to regulate the entire sphere of the industry and repeal all current existing oil and gas legislation, had struggled to see the light of day despite its. Nigeria will move in one step from one of the most opaque petroleum nations in africa, to one of most open and. The politics and crisis of the petroleum industry bill in. The fall and rise of the nigerian petroleum industry. Dynamics, controversies and wayforward by comrade hyginus chika onuegbu jp, fca chairman, nupeng. Nigeria is the largest oil and gas producer in africa. Nigeria has moved closer to turning an oil industry bill into law after a 17 year struggle to complete the legislation which aims to increase transparency and stimulate growth in the countrys oil. Policy brief on the petroleum industry bill ince the commencement of the drilling of oil in oloibiri, in the present bayelsa state in 1956, petroleum s has grown to become the dominant sector in the nigerian economy. The pib is an executive bill for an act to provide for the establishment of a legal, fiscal and regulatory framework for the petroleum industry in nigeria and for related matters. The petroleum industry governance bill 1 this policy brief assesses environmental and other aspects of the petroleum industry governance bill pigb.
A key change proposed by the bill is the revision of the fiscal framework governing the upstream oil and gas sector, which could impact significantly on crude oil and gas business in nigeria if the bill is passed into law. Dynamics, controversies and wayforward ppt presentation pack of the main paper. The petroleum industry governance bill kpmg nigeria. Reacting to the passage of the bill, nigeria union of petroleum and natural gas workers, nupeng, and. The pigb was passed by the nigerian senate in may 2017, and house of representatives in january 2018, as part of a. The petroleum industry bill pib, an omnibus law meant to regulate the entire sphere of the industry and repeal all current existing oil and gas legislation, had. Issues involved in petroleum industry bill and national development in nigeria despite the stated objectives, most of the debate on the petroleum industry bill pib revolves around. Pdf nigeria is a major oil and gas producing country. Nigerias new oil industry bill ready to launch almost two decades after a petroleum industry bill was first mooted and after numerous revisions, the country is. Nigeria s total petroleum refining capacity is 445,000 barrels 70,700 m 3 per day, however, only 240,000 barrels 38,000 m 3 per day was allotted during the 1990s subsequently, crude oil production for refineries was reduced further to as little as 75,000 barrels 11,900 m 3 per day during the regime of sanni a. Overview nigeria is currently the largest oil producer in africa and was the worlds fourthlargest exporter of lng in 2015. Implications of nigerias draft petroleum fiscal policy.
The petroleum industry bill the pib or the bill is perhaps the most talked about piece of legislation in nigeria ever, given the far reaching reforms which it proposes to an industry which is the single most significant contributor to the national economy. The bill will replace nigerias main legislation in the oil and gas industry written in 1969 and nnpc decree of 1997. An act to provide for the exploration of petroleum from the territorial waters and the continental shelf of nigeria and to vest the ownership of, and all onshore and offshore revenue from petroleum resources derivable therefrom in the federal government and for all other matters incidental thereto. At current production level, it can last us for 80. After years of delay, the senate on thursday passed the petroleum industry governance bill, inching closer to regulatory and business reforms in the nations oil and gas industry. The bill, which still needs to be passed by the house of representatives and assented to by the president of the frn before it becomes law, seeks to establish a framework for the creation of commerciallyoriented and profit. The petroleum industry administration bill 2018 8 the petroleum industry administration bill a bill for an act to provide for the establishment of the administrative framework for the petroleum industry in nigeria and for other related matters. The sixth part will conclude the analysis, where the inherent weaknesses of the aforementioned laws and regulations will be brought to. An analysis of the nigerian petroleum industry bill 2012. The petroleum industry bill pib, which was initially proposed in 2008, is expected to. Public regulation of the oil and gas industry in nigeria. No one would doubt that the taxation of severed mineral interests as well as oil and gas production is an important issue as governments hope to capitalize on this burgeoning industry, while maintaining an attractive environment for business expansion. Laws of the federation of nigeria petroleum act 1990. The fifth section will highlight the recent developments in the oil and gas industry, such as the petroleum industry bill and the local content act.
Federal republic of nigeria petroleum host and impacted communities development bill 2018 a bill for. Jan 18, 2018 nigeria has moved closer to turning an oil industry bill into law after a 17 year struggle to complete the legislation which aims to increase transparency and stimulate growth in the countrys oil. Canada is reputed to have one of the best oil and gas tax regimes in the world. The petroleum industry governance bill pigb is a fraction of the petroleum industry bill pib aimed at reforming nigerias oil and gas sector. The petroleum industry bill pib and the petroleum industry governance and institutional framework pingif bill 5 2. In the first part of this article, we analysed the version of the to an extent, nigeria s restructuring exercise is similar to that of funds distributed to achieve hfe are the revenues raised from the petroleum industry governance bill pigb passed by the senate. In the first part of this article, we analysed the version of the to an extent, nigerias restructuring exercise is similar to that of funds distributed to achieve hfe are the revenues raised from the petroleum industry governance bill pigb passed by the senate.
This is potentially welcome, yet the bill ultimately fails to offer a clear path to more effective management of nigerias stateowned oil enterprises. The 2012 executive draft of the petroleum industry bill 2012 pib proposes to restructure the nigerian national petroleum corporation nnpc. The petroleum industry bill 2012 pib seeks to ensure that the management and allocation of petroleum resources in nigeria and their derivatives are conducted in accordance with the principles of good governance, transparency and sustainable development in nigeria. International oil companies are concerned that proposed changes. Pdf the politics and crisis of the petroleum industry bill in nigeria. Nigeria the petroleum industry bill and the future of nnpc. May 26, 2017 senate passes petroleum industry bill, pib. Review of the petroleum industry governance and institutional framework bill introduction many commentators and stakeholders, in the nigerian oil and gas industry have called for the muchpublicized petroleum industry bill to be enacted into law in piecemeal. It has become a major foreign exchange earner, contributing about 90% of government foreign exchange earnings, 85% of. Reforming nigerias petroleum industry 3 the petroleum industry bills proposed fiscal regime 6 the petroleum host communities fund phcf and its ambiguities 10 environmental implications of passing the petroleum industry bill the following analysis was written and published over the period of august 2015. Nigerian senate related news after years of delay, the senate on thursday passed the petroleum industry governance bill, inching closer to regulatory and business reforms in the nations oil and. Pdf the petroleum industry bill 2012 and the niger delta region. The petroleum industry bill is gaining more attention in nigerias national assembly as the current administration plans to create a powerful energy regulator analysing the pib, a report by. Senate passes petroleum industry bill, pib vanguard news.
If the house of representatives concurs, it could be signed into law. Crude oil from the niger delta basin comes in two types. The new petroleum industry bill and taxation of petroleum. Pdf the nigerian petroleum industry bill pib, which is currently being discussed in parliament, aims at reforming the oil industry. Politics 5 things we know about the petroleum industry bill. The politics and crisis of the petroleum industry bill in nigeria article pdf available in the journal of modern african studies 5203. This thesis argues that certain tax measures in canadas oil and gas industry have considerable potential for addressing certain industry. Enacted by the national assembly of the federal republic of nigeria part i objectives 1. The key objectives of the bill as stated in part 1 of the pib are. Several stakeholders in nigerias oil and gas industry have emphasized the need for petroleum sector reforms in nigeria.
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