Last week, Thursday, July1, the Senate finally passed the long-awaited Petroleum Industry Bill. It is a milestone in the history of Nigeria’s legislative affairs. Too many interests had repeatedly scuttled it over the years.
When I was a Boy Scout, our motto was, “Be Prepared”. This has always shaped my attitudes and mindset with regard to public finance and economic policy management. We must prepare for a world in which oil is no longer the harbinger of the gilded age that we once dreamt of. The new bill prescribes 30% of the Nigerian National Petroleum Corporation profits to fund exploration activities in “frontier basins”.
Other important aspects of the new bill include finance, taxation, environment and centre gas supply and regulation and gas-flaring. Tax and finance provisions have been streamlined to ensure greater transparency. The Upstream Regulatory Commission is empowered to monitor and ensure compliance with environmental regulations. Operators must submit environmental plans for both prevention and remediation on environmental pollution.
In my humble view, the PIB runs short in many key areas. There is no evidence of adequate commitment to climate change and energy transition in line with the Paris Agreement. I would have loved to see the outlawing of gas flaring altogether. We need a three-year transition period when gas flaring must be phased out altogether. Those that continue to do it will be doing so under stiff penalty.
It’s very bad. They made ways of extorting money from Southern Nigeria, why can’t they do the same to solid minerals like gold from sokoto. Should go to the pocket of the southerners too