Page 4 - AfrOil Week 28 2021

AfrOil COMMENTARY AfrOil

Niger River Delta (Photo: ESA)
PIB already under fire

Following the passage of a new law governing the oil and gas sector, Nigeria’s government draws

complaints from trade associations, labour unions, government agencies and host communities

NIGERIA’S government secured passage of the In a joint statement, the groups reported that
Petroleum Industry Bill (PIB) earlier this month, these restrictions covered all types of refined
WHAT: when both chambers of the National Assembly fuels – even those for which Abuja has already
Industry associations, approved the draft law in its third reading. The liberalised the rules governing permission to
labour unions, govern- stage is now set for President Muhammadu import, such as base oils, diesel, kerosene and
ment agencies and host Buhari to sign the bill, and he is expected to do LPG. They also alleged that the restrictive pro-
communities have all so as soon as the Senate and the House of Repre- visions had been introduced secretly during the
complained about the sentatives harmonise their versions of it. legislative process.
provisions of the PIB. This is a significant achievement, given that Clement Isong, the CEO of MOMAN, and
officials in Abuja have been trying (and failing) Olufemi Adewole, the executive secretary of
WHY: to put a new legal regime in place for the oil and DAPPMAN, said in the letter that they wanted
The long-awaited legis- gas industry since 2009. However, it does not to ensure that there was a level playing field
lation will not solve all of
the petroleum industry’s mean that the debate over how best to govern for Nigerian companies. If only a few refinery
problems. the sector is over. operators have the ability to import petroleum
In fact, the PIB has drawn a significant products, the domestic fuel market will be less
WHAT NEXT: amount of criticism since its passage in the competitive and prices are likely to rise, they
Compensation for host National Assembly. This essay will examine wrote. “Allowing imports by major players
communities is still a several of the complaints that have been lodged across the supply chain will protect consum-
thorny issue and may against the bill. ers by ensuring that local pump prices are not
continue to drive up higher than regional or international prices,”
production costs. Fuel import restrictions they added.
One of these complaints concerns the down- MOMAN and DAPPMAN are not the only
stream sector and access to the domestic petro- critics of these provisions, according to Van-
leum product market. guard. Sources told the newspaper last week
According to two Nigerian trade associa- that the Nigeria Union of Petroleum and Natu-
tions, the Major Oil Marketers Association of ral Gas Workers (NUPENG) and the Petroleum
Nigeria (MOMAN) and the Depot and Product and Natural Gas Senior Staff Association of
Marketers Association of Nigeria (DAPPMAN), Nigeria (PENGASSAN) were also wary of the
the PIB includes provisions that allow only a few idea of granting fuel import licences to only a
Nigerian refiners to import petroleum products. few refineries.

P4 www. NEWSBASE .com Week 28 14•July•2021