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The Federal Government says it will not remove oil subsidy for now on account of Monday’s signing of the Petroleum Industry Bill by President Muhammadu Buhari.
Minister of State for Petroleum Resources,Chief Timipre Sylva,gave the indication through his spokesman,Mallam.Garba Muhammad,saying the government would deliberate on the phasing out of fuel subsidy at the appropriate time.
The Minister’s current clarification came on the heels of his previous statement that fuel subsidy would be discontinued in Nigeria immediately President Muhammadu Buhari signed the Petroleum Industry Bill into law.
President Muhammadu Buhari had signed the Petroleum Industry Bill 2021 into law in his determination to fulfill his constitutional duty,according to Femi Adesina, Special Adviser to the President (Media and Publicity)
He said in a statement that the President had been working from home in five days quarantine as required by the Presidential Steering Committee on COVID-19 after returning from London on Friday August
The statement said ceremonial part of the new legislation will be done on Wednesday, after the days of mandatory isolation of President Muhammadu Buhari would have been fulfilled.
The Organisation of Petroleum Exporting Countries (OPEC), Secretary General, Mohammad Sanusi Barkindo, commended President Muhammadu Buhari for signing the Petroleum Industry Bill (PIB)into law
The OPEC’s scribe,in a statement,said the gesture marks the beginning of a new era of growth and prosperity that will be beneficial to the petroleum industry and ultimately to the Nigerian people.
He said:“Mr. President, your signature on the PIB caps many years of important deliberations and detailed legislative work. I wish to extend my congratulations to you on signing into law the Petroleum Industry Bill (PIB), which marks a significant milestone for Nigeria’s oil industry and an historic achievement for your Presidency. With the stroke of a pen, you have inaugurated a new era for the industry following years of legislative efforts to strengthen the legal, regulatory, fiscal and governance framework of the petroleum sector.
He emphasized that the new law will enhance the Nigerian petroleum industry’s reputation, open the door to new investment, and ultimately strengthen its position to meet the world’s growing demand for energy.
He said the enactment of this legislation is especially timely as the investment outlook becomes clouded by efforts aimed at accelerating a lower-carbon future.
He added:“Furthermore, the new law will help harness Nigeria’s potential to achieve its programme of raising oil production to 4 mb/d and oil reserves to 40 billion barrels, while also drawing on the country’s vast natural gas reserves to provide clean and efficient energy. In addition, these resources will be vital to supplying world markets with a broad portfolio of energy options, and support global efforts to alleviate energy poverty as outlined in the United Nations’ Sustainable Development Goal 7”, he stated
He noted that the passage of the PIB by both houses of the National Assembly on 16 July 2021 and your act of signing it into law coincide with another significant milestone in our country’s history – the 50th anniversary of Nigeria’s membership of OPEC.
Professor Wunmi Iledare,Chairman of Ghana National Petroleum Corporation,congratulated the Presidency and the 9th National Assembly for bringing the wobbling PIB journey since 2000 to an end.
He said he sees in the Act, investment friendly fiscal framework with a well designed regulatory and governance institutions.
He added:”The next phase is implementation without regulatory and institutional captures. One can hope for the appointments of competent professionals with diverse work experiences as members of the implementation Committee.Although, I have no crystal ball, but I am confident the Act stands a good chance to enhance industry value to the economy”
Executive Director of Mother Earth Foundation,Nnimmo Bassey, expressed shocked that the president signed the PIB in the form sent to him by the National Assembly into law.
He said that he had believed that the President would listen to the voices of Nigerians who have suffered over six decades unmitigated ecological assault and social-economic marginalization.
He said there are some key defects in this law.
He said:”One is that it makes nonsense of Nigeria’s climate change Nationally Determined Contributions (NDCs). It locks in gas flaring which is a major emitter of greenhouse gases by extending a regime of insignificant fines. At a time when the world is shifting from fossil fuels, 30% of the profit of the NNPC would already be sunk into searching for oil field dusters or bottomless speculators search for crude oil in so-called frontier basins.
” The PIB will not halt the move by oil companies to shift offshore and leave their mess in already traumatized communities. Oil companies are making these moves because they will escape accountability and secondly because they will pay minuscule amounts as royalties in deep waters.
“Moreover, the host community funds is set up to be managed in a very colonial system, giving oil companies virtually absolute powers to ride roughshod over the interest of Niger Delta communities in terms of who sets up the boards and who decides what projects get to be executed.
“Finally, the criminalization of communities over oil cavities incidents is not something the president should assent to. Communities cannot be held accountable for incidents done by individuals. Would anyone ascribe banditry to a whole community simply because a bandit carried out nefarious actions in their territory? The clause criminalizing communities appear to be inserted so as to ensure that the host communities’ funds eventually are used to pay for the irresponsible action of oil companies who neither carry out needed integrity checks on their facilities nor replace obsolete ones”
He added that the signing of the PIB into law send a wrong signal to the peoples in directly affected communities and to other Nigerians who expect a listening ear in Aso Rock.
Martin Onovo,a petroleum engineer and one-time presidential aspirant,said that the President signed ‘Buhari’s version’ of the PIB into law,not the original one that reflects the aspiration of Nigerians on robust laws governing the management of the natural assets in the country.
He faulted the president’s assent to the bill despite the obvious lacunae in the bill,pointing out he was not patriotic enough
Mohammed Bougei Attah,National Coordinator,Procurement ,Observation and Advocacy Initiative, said that the president’s action on the bill,was a welcome development after about a decade of struggle and agitation to get it through, largely by the civil society groups.
It is a victory for us and the entire country,he said.
He added:”However as in previous similar issues, the passage of a law is one part, and the implementation is another factor.
Will corruption in the system allow this to work? Will the politicians have the political will to implement all the provisions? And we should not forget that the PI Act is to compliment other existing laws, as it cannot work in isolation. The Public Procurement Act on my mind.That the President signed PIB 2020 into law is laudable. It is a noble act that is worthy of euphoric celebration “.
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