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DMEA COMMENTARY DMEA

Outlines of Nigeria’s new oil and

gas regime becoming clearer

As more details of the PIB come to light, the West African state appears to be
working towards significant changes and greater transparency

NIGERIA NIGERIA’S new oil and gas law, known as the submitted the PIB to both chambers of the
Petroleum Industry Bill (PIB), has passed its first National Assembly several weeks ago. He has
WHAT: reading in the Senate, the upper chamber of the said he hopes to sign the bill into law before the
Nigeria’s Senate has National Assembly. end of the year.
passed the PIB in its first According to local press reports, the legisla-
reading, moving it one tion cleared this hurdle on September 30, one NNPC’s new form
step closer to ratification. day after the leaders of both chambers met with The legislation lays the groundwork for signifi-
Timipre Sylva, the country’s Minister of State for cant changes in the Nigerian oil and gas sector.
WHY: Petroleum Resources, and Mele Kyari, the group For example, it calls for transforming NNPC
Local press reports managing director of Nigerian National Petro- from a government-run entity into a commer-
indicate that the bill is leum Corp. (NNPC). cial company with no direct access to state funds.
designed to replace the Senators voted to approve the PIB in its first News of this shift has fuelled speculation that
existing system with reading just two days after promising the gov- the company is being scrapped, but Sylva has dis-
a more commercially ernment that they would speed up the process missed rumours to this effect. “We have heard
oriented and transparent of evaluating and discussing the law. They also so much noise about NNPC being scrapped,
set of structures. stressed, though, that they intended to review but that is not envisaged by the [PIB] at all,” he
the bill thoroughly, especially since it is being informed reporters last week. “NNPC will not
WHAT NEXT: discussed at the same time as the proposed fed- be scrapped but commercialised in line with
Abuja has apparently not eral budget for 2021. deregulation [moves] being made across all the
ruled out privatisation As of press time, it was not clear when the streams in the sector comprising the upstream,
of the new national oil Senate would proceed to the second reading. downstream and midstream.”
operator, NNPC Ltd. The legislation must pass several more read- Sylva did not divulge further details of these
ings before it can take the next step towards initiatives, but Punch reported on October 6 that
ratification. it had seen a copy of the PIB. The bill provides
Nigerian President Muhammadu Buhari for NNPC’s current responsibilities to be divided

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