Page 4 - AfrOil Annual Review 2021

AfrOil JANUARY AfrOil

Some industry observers believe the current version of the bill might hamper the development of deepwater fields (File photo)
Some industry observers believe the current version of the bill might hamper the development of deepwater fields (File photo)
Nigeria begins another year

without a new oil and gas law

Industry observers are keen to see the PIB passed soon – and are also voicing their concerns

WHEN his government submitted its draft signature in the next few months.
version of the Petroleum Industry Bill (PIB) to
WHAT: the National Assembly last August, President Advocating for passage
The National Assembly Muhammadu Buhari said he was determined Buhari is not the only one eager to see the PIB
has resumed its review of to see the legislation pass quickly. Specifically, pass. Late last month, several public figures told
the PIB. he stated that he wanted to wrap up the matter the Vanguard newspaper that they hoped the
before the end of 2020 so that the country’s oil National Assembly would move quickly.
WHY: and gas sector could start benefitting from the One of them was Victoria Ibezim-Ohaeri,
Without a new law in introduction of the new law as soon as possible. the executive director of Spaces for Change, a
place, Nigeria will have
difficulty maximising the Buhari’s sense of urgency was understand- non-profit organisation that promotes human
potential of its oil and gas able, given that Nigeria has been trying (and rights. “Nigeria needs to pass the PIB as soon
resources. failing) to pass a new oil and gas law for more as possible to ensure the country gets maxi-
than two decades. However, legislators missed mum benefits from its petroleum resources,”
WHAT NEXT: the president’s deadline. she commented. “Crude oil dominates Nige-
As critiques emerge, the Both houses of the National Assembly passed ria’s economy, accounting for around 80% of
government still hopes the PIB in the first reading in September and in export earnings. Nigeria has the largest oil and
to wrap up the legislative the second reading in October. Then in Novem- gas reserves in sub-Saharan Africa, with an esti-
process in March or April. ber, they suspended discussions so that they mated 37bn barrels of oil and 188 trillion cubic
could secure the passage of a budget for 2021. As feet [5.32 trillion cubic metres] of gas.”
a result, the PIB not reached the final stage of the Another was Omowumi Iledare, a professor
legislative process, and officials in Abuja are now at the Institute for Oil and Gas Studies, part of
aiming to finalise the bill in March of August. the University of Cape Coast in Ghana. He said
And so Nigeria has marked the beginning of it was in Nigeria’s best interest to use the new
yet another new year without an adequate legal legislation as a selling point. The sector needs to
foundation for the development of its abundant attract new investment, especially now that low
hydrocarbon resources. prices, the coronavirus (COVID-19) pandemic
Nevertheless, discussions on the bill have and other factors have impaired the federal
resumed, and legislators are still hopeful of government’s ability to support new capex and
passing it and sending it to the president for other programmes, Iledare told Vanguard.

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