Page 7 - AfrElec Week 20 2021
P. 7
AfrElec COMMENTARY AfrElec
sections of the PIB. “Prepare company for initial More questions to answer
public offer so the enterprise can raise its own Nevertheless, in a practical sense, it is not clear
funding,” it said. what effect these revisions will have on the pro-
Additionally, the council called for phasing gress of the draft law. Legislators have already
out price controls on gas, saying that liberal- missed the last deadline mooted by the gov-
isation was needed but could not be rushed. ernment, and they have not yet said when they
“Deregulation is key to stimulating investment,” might wrap up the third reading of the PIB.
it stated. “To avoid price shocks, a transitional Even if that happens relatively quickly,
arrangement can be included. Such arrangement though, it will take time to determine how the
must specify [a] timeline to end price regulation.” new law will affect the oil and gas sector. On the
one hand, Nigerian officials will have to discuss
No technical reasons for delay how to implement the PIB once it passes and
In a technical sense, the introduction of these then take steps to carry out the plans they make.
changes should not alter the timeline for debate On the other hand, the PIB will not necessar-
and passage of the PIB. Under Nigerian law, the ily resolve all questions about the industry’s fate.
Buhari administration has the right to revise the PEAC, for its part, has indicated that it believes
bill in this manner. the PIB does not go far enough.
Indeed, Mohammed Mongunu, the chair- In its presentation for the May 7 meeting
man of the House of Representatives’ PIB com- with Buhari, the council said: “Enactment of
mittee, stressed this point in an interview with the Petroleum Industry Bill (PIB) through the
Vanguard on May 16. “The PIB is an executive National Assembly will not of itself immedi-
bill, meaning that the government is free to make ately stimulate investment needed in the oil and
changes in it,” he explained. gas sector. Nigeria should identify key strategic
Meanwhile, NNPC has signalled that it will projects that will enable the achievement of the
not raise any objections to the revisions. Kenny various objectives – ranging from increased oil
Obateru, the group general manager for the production through expansion of gas pipelines.
state-owned company’s public affairs division, These projects should then be the subject of dis-
said as much in a message to Vanguard. “NNPC cussion with oil sector operators – international
is owned by the government and the people of oil companies (IOCs) and indigenous compa-
Nigeria,” he wrote. “The ownership structure nies. A process of accelerated approval can be
that shall be prescribed for the corporation in the established, similar to the NLNG [Nigeria LNG]
PIB shall, once passed into law and accented to, model in 1982. The intention is to ensure that
automatically become the new ownership struc- before the end of this administration, invest-
ture of the corporation.” ment decisions can be taken.”
Week 20 20•May•2021 www. NEWSBASE .com P7
