PIB: NNPC, PTDF, PPPRA, OTHERS TO BE SCRAPPED

Explanations at yesterday’s workshop organised for the Senate joint committee on PIB, comprising petroleum downstream, upstream and judiciary, regarding the controversial Petroleum Industry Bill (PIB) indicated that major government agencies in the oil industry will be scrapped by the revolution being proposed by the PIB, if eventually passed by the National Assembly.

According to the documents and explanations given by experts on the Bill, the 10 government agencies that are most likely to be scrapped are Petroleum Technology Development Fund, Petroleum (Special) Trust Fund, Petroleum Equalization Fund, Petroleum Profit Tax, Nigeria National Petroleum Corporation, Deep Offshore and Inland Basin Production sharing contract.

Other agencies likely to kick the bucket are Motor Spirits (Returns), Associated Gas Re-injection and Oil Pipelines.

Buttressing this fact, a member of PIB drafting committee, Dr. Francis Adigwe, gave a hint that the passage of PIB into law would bring about the repeal of 10 acts.

He added that not all laws relating to oil and gas will be repealed, pointing out that the existence of the PIB law would bring about creation of new ten government agencies to be coordinated by the Minister of Petroleum.

Adigwe also explained that the Minister, as proposed by the Bill, will be treated as an institution and not a person.

He advised the National Assembly to study critically the aspect of the Bill containing discretional powers given to the President to award oil blocs, as well as the section that made the Minister of Petroleum an institution on his or herself and not an individual.

He said, “the concept of the Minister in PIB is an institution and not a person because provisions in the bill make a sitting Minister of Petroleum Resources to have sweeping powers such as power of coordinating and regulating the critical areas of the oil and gas sector.

“Advised the President on the appointment of all the Chief Executive officers including, upstream petroleum inspectorate and the downstream which is not available in the current petroleum Act .

“Also in the bill, power to nominate members of the board of the agencies, as well as serving as the Chairman of the board of National asset management company are given to the Minister”, he said.

The workshop is an offshoot from the controversy which has been trailing consideration and adoption of the new Petroleum Industry Bill (PIB).

It was on this basis that the Senate committees on Petroleum Upstream, Downstream, and Judiciary, yesterday sought expert information on the grey and controversial areas in the new Bill.

The Senators who participated in the workshop

Senators from both the north and the south were well represented at the workshop which witnessed a robust participation by the lawmakers.

The new PIB, since it was submitted last year to the National Assembly by the Minister of Petroleum Resources, Diezani Alison-Madueke, had generated intense debate, resulting in apparent disagreement between the northern and southern senators.

In his opening remarks, the Chairman of the event, Emmanuel Paulker, said the essence of the workshop was to give the lawmakers in-depth understanding of the details in the proposed new oil industry Bill.

Source: Peoples Daily