PIB ‘should be passed’ amid threat Of COVID-19 to oil sector

Participants at an online workshop organised to review key issues that require urgent reforms in the oil and gas industry amid the COVID-19 pandemic have called for an accelerated passage of the petroleum industry bill (PIB)

The workshop organised by the Centre for Transparency Advocacy (CTA) drew participants from various civil society groups as well as the media.

In a communique signed by Faith Nwadishi, CTA executive director, the participants said they are hopeful that the reform actions suggested during the workshop, if taken, could send a strong positive signal to the world, and also ensure that the oil and gas industry is properly positioned to stimulate a rapid recovery of our economy in the post COVID-19 period

The participants said subsidy removal, deregulation of the downstream sub-sector; and acceleration of the submission, passage, and assent to the PIB are urgent reforms needed.

On subsidy removal, participants at the workshop welcomed the announcement made by Mele Kyari, group managing director (GMD) of NNPC, on the immediate cessation of subsidy on petroleum motor spirit (PMS).

They, however, urged the federal government to, as a matter of urgency, provide a legal or policy framework that backs the pronouncement in order to prevent a possible reversal in the future.

On deregulation of the downstream sector, the participants recommended that government should seize the current opportunity of low crude prices to deregulate the downstream sector.

“On the Petroleum Industry Bill: That the urgent need to overhaul the regulatory framework for the oil and gas industry has been further highlighted by the current crisis facing the industry,” the communique read.

“That the executive should, without further delay, submit a draft PIB (in whole or in parts) to the National Assembly for consideration. In turn, the National Assembly, when they receive the bill (or bills), should accord it the urgency it deserves by fast-tracking its consideration and passage.

“Overall, we advocate that these actions need to be taken immediately in this period (of lockdown/partial lockdown), as the post-COVID-19 conjecture, from all indications, does not appear favourable.”