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Petroleum Industry Bill: Executive Influence Should Be Curbed – Nwani

The Nigerian government has been urged to take a closer look at the Petroleum Industry Bill (PIB) and come up with the right framework that … Continue reading Petroleum Industry Bill: Executive Influence Should Be Curbed – Nwani


The Nigerian government has been urged to take a closer look at the Petroleum Industry Bill (PIB) and come up with the right framework that will favour all parties concerned.

Channels Television’s business programme, Business Morning, played host to the Director of Research, at the Lagos Chamber of Commerce & Industry, LCCI, Mr Vincent Nwani whose organisation has released a report on the PIB.

It has been agreed that the Petroleum Industry Bill is a laudable effort, but there are certain key areas that must be addressed to ensure it achieves its set objectives. Among the issues mentioned are high taxation and transparency.

While companies are expected to submit data on their revenue and production cost, which will be published by the National Petroleum Directorate, the PIB allows for exemptions in its provision which stakeholders are not quite comfortable with.

Mr Nwani said: “The power of the President and the Minister as they are currently is still what is carried over to the new draft bill, and that is a challenge and a concern to us. We want a PIB that should contain dispute resolution mechanism, the way the PIB is drafted right now, that mechanism is not there.”

Oil and Gas Lawyer and Senior Associate of Perchstone and Graeys, Mr Tolulope Aderemi, who was also on the programme was however of the view that exemptions would not constitute a problem to the bill. He stressed that there would be guiding principle for the Minister to grant exemptions, as well cogent justifications such as public policy reasons.

He added that a situation where wide and loose exemptions would be given would, however, amount to “doing a disservice to the oil and gas sector, which will contradict the philosophy behind such exemptions itself.”

In view of the declining volume of export to the United States within the last one year, Nwani stressed that it was necessary to develop a better operational framework to ensure that Nigeria’s oil and gas industry was attractive for both existing and potential operators.