Senate President lists benefits of PIB bill ensures optimally benefit from crude oil henceforth.

The President of the Senate, Ahmad Lawan, has said that the Petroleum Industry Bill (PIB) which is presently before the National Assembly for consideration and passage will ensure that Nigerians benefit optimally from crude oil production and sale of fossil fuel reserves.

According to a statement that was issued by the Special Assistant, Press to the Senate President, Tabiowo Ezrel, this disclosure was made by Lawan, while declaring open a 2-day public hearing on the bill by the National Assembly on Monday, January 25, 2021.

The Senate President pointed out that the National Assembly in its consideration of the piece of legislation would ensure that the bill when passed into law, guarantees improved revenue earnings for the country.

Lawan in his statement said, ‘’Let me say this, we (National Assembly) will pass this bill not without ensuring that it is a bill that satisfies certain conditions.

Nigeria is blessed with these resources, we want Nigeria to benefit optimally from them. In fact, we are in a hurry because we have lost so many years of benefits that we could have had.

’’He, however, noted that the non-passage of the PIB had been a major drag on the industry over the years, significantly limiting its ability to attract both local and foreign capital at a time when many other countries are scrambling to exploit their oil and gas resources

Going further, Lawan said, ‘’The mere knowledge that the nation’s oil industry is still being governed by laws enacted more than 50 years ago is ludicrous and extremely disappointing.

‘’As legislators, we will strive to deliver a Bill that will enhance the growth of our oil and gas industry, modernize our fiscal system and enhance competitiveness, while creating harmony for all stakeholders.

This is a promise we have made and that we shall achieve.’’

Nigeria must have an oil and gas industry that benefits its people. Equally, our oil and gas industry must be competitive. We must create a sustainable investment climate, where business in the sector will flourish,’’ he said.

He also added that the determination by the legislature to pass the Bill is driven by the need to overhaul a system that has refused to operate optimally in line with global standards, resulting in loss of continental competitiveness, transparency, accountability, good governance and economic loss for the petroleum industry and the country.

The Senate President revealed that the PIB comprises of 4 chapters that outline;

How to create efficient and effective governing institutions with clear and separate roles for the petroleum industry,

Establish a framework for the creation of a commercially oriented and profit-driven National Petroleum Company,

Promote transparency, good governance and accountability in the administration of the petroleum resources of Nigeria among other

https://twitter.com/SPNigeria/status/1353698936062664704/photo/1

He also noted that the PIB upon passage and assent into law by the President;

Would foster sustainable prosperity within host communities, provide direct social and economic benefits from petroleum operations to host communities,

Create a framework to support the development of host communities among others

Establish a progressive fiscal framework that encourages investment in the Nigerian Petroleum Industry,

Balancing rewards with risk and enhancing revenues to the Federal Government of Nigeria,

Provide a forward-looking fiscal framework that is based on core principles of clarity, dynamism and fiscal rules of general applications,

Establish a fiscal framework that expands the revenue base of the Federal Government while ensuring a fair return to investors.

Lawan assured that the National Assembly during the public hearing would deal with all issues relating to the oil and gas industry with thoroughness and effectiveness so as to avert colossal losses to the nation’s economy.

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