Page 6 - AfrElec Week 20 2021

AfrElec COMMENTARY AfrElec

More delays for PIB?

As Nigerian MPs miss their latest deadline for passage of the new

petroleum law, the Buhari administration makes three changes to the bill

WHEN Nigerian President Muhammadu legislation to establish a single regulatory agency
NIGERIA Buhari submitted the Petroleum Industry Bill to oversee the upstream, midstream and down-
WHAT: (PIB) to the National Assembly last August, he stream sectors, rather than setting up one regu-
Nigerian legislators did indicated that he expected fast action. More spe- latory body for the upstream sector and another
not pass the PIB in the cifically, he told members of the legislature that for the midstream and downstream sectors.
third reading last month, he wanted them to pass the bill before the end It has also outlined plans for selling an initial
as previously anticipated of 2020. public offering (IPO) of stock in the national
This deadline was not met. Members of the oil company (NOC), Nigerian National Petro-
WHY: House of Representatives, the lower chamber, leum Corp. (NNPC), and liberalising the price of
The presidential and the Senate, the upper chamber, did pass the associated and natural gas shipments to thermal
administration has PIB in the first reading in late September and power plants (TPPs).
revised the bill in then proceeded to pass it in the second reading
line with PEAC’s in late October. However, they then suspended PEAC makes case for changes
recommendations discussions on the bill and turned their focus to Members of PEAC argued at a meeting with
the 2021 budget. Buhari on May 7 that their recommendations
WHAT NEXT: As a result, the PIB did not move on to public would allow the PIB to offer more benefits to the
Although the changes hearings, the next stage of the legislative process, country.
do not make further until early 2021. Likewise, the two chambers did
delays inevitable, they not begin the third reading of the PIB until last
do highlight a number of month. At that time, they expressed confidence In a document presented at that meeting,
challenges facing the oil that the bill would pass in the third reading by the council defended its decision to push for
and gas sector the end of April and then be sent to Buhari for the establishment of a single regulatory agency.
signature into law in early May. “One regulator with relevant departments will be
This deadline has also been missed. As of more efficient and allow for greater synergy in
press time, the PIB was still under discussion in regulating the entire industry value chain. Exam-
both houses of the National Assembly. ples are Nigerian Communications Commission
One of the reasons why discussions have (NCC) and the Nigerian Electricity Regulatory
continued, according to Nigerian press reports, Commission (NERC),” it wrote.
is that Buhari’s administration has made three PEAC also asserted that an IPO would help
changes to the bill, in line with recommenda- NNPC secure funding once its operational
tions from the Presidential Economic Advisory functions were transferred to a corporate struc-
Council (PEAC). ture separate from the government that will
More specifically, it has revised the draft be known as NNPC Corp., in line with other

P6 www. NEWSBASE .com Week 20 20•May•2021