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AfrOil COMMENTARY AfrOil

(File photo)
(File photo)
Outlines of PIB becoming clearer

As more details of the new oil and gas law come to light, Nigeria appears

to be working towards significant changes and greater transparency

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

P4 www. NEWSBASE .com Week 30 07•October•2020