Senate commences consideration of Petroleum Industry Bill after committee report

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The Petroleum Industry Bill moved one step closer to becoming law after Senators on Thursday began to consider its provisions after a committee report. Senator Sabo Mohammed (Jigawa South-West) who chairs the Joint Committee on Petroleum (Downstream); Petroleum (Upstream) and Gas Resources presented the report of the committee.

He said the PIB is designed to update and replace the outdated provisions with a more comprehensive and current petroleum industry law that aligns with global standards. He added that it also seeks to empower institutions and not individuals, remove bad governance which leads to inefficiency and corruption in the country’s petroleum industry. Speaking on the PIB, the Deputy Senate President, Senator Ovie Omo-Agege said the bill will create an enabling environment for investors to come in and invest in Nigeria’s oil sector.

He, however, appealed that the equity share holding of companies be increased beyond five percent as contained in the report of the committee. On gas flaring, Senator Omo-Agege was opposed to the use of penalty funds in development of frontier gas basins. He said such funds should be channeled into developing affected communities.

According to him, the communities are the ones affected by gas flaring, and therefore whatever funds are raised from penalizing companies involved in gas flaring should be used for remediation purpose in affected communities by providing them hospitals and roads, among other basic amenities.

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