Governors elected under the platform of the ruling All Progressives Congress (APC) have said President Muhammadu Buhari’s signing of the Petroleum Industry Bill (PIB) into law was a demonstration of the unwavering commitment of the party and current administration to a democratically changed Nigeria.
Buhari on Monday signed the PIB into law after many years of delay by previous administrations.
The governors under the aegis of Progressive Governors Forum (PGF) in a statement in Abuja by its Chairman, Gov. Abubakar Atiku Bagudu of Kebbi State celebrated Buhari for assenting to the Bill.
Bagudu, in the statement, noted the new law is a testimonial to APC’s commitment to restructuring the country’s economy through a democratic process in line with provisions of the 1999 Nigerian Constitution as amended.
Congratulating the President for the “important milestone”, Bagudu pledged the support of the forum to the process of transition to the new era of oil and gas operation and management as provided by the new Petroleum Industry Act 2021.
“After more than two decades of endless national debates and stalemate, there is today a new Petroleum Industry Act in the country, which has provided six months transition for the emergence of the new institutional framework for the operations of oil and gas industry in the country.
“The Progressive Governors Forum (PGF) commends Mr. President for this historic feat of moving the nation forward to a new democratic era of governance and business management of the oil and gas industry. With Nigeria National Petroleum Corporation (NNPC) now unbundled, and in its place, three new structures – Nigerian Upstream Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, and Nigerian National Petroleum Company Limited – stronger accountability structures, each with a Board drawing representation from stakeholders in the oil and gas industry is instituted.
“The monopoly status of the old NNPC, which vested it with both the powers of regulating the industry as well as extraction and sales of crude oil in both the upstream, midstream and downstream has been abolished.
“With the new Act, the task of regulation is vested in the two regulatory bodies created by the law. While extraction and sales of crude will now be undertaken by both the new Nigerian National Petroleum Company Limited and other private companies in both the upstream, midstream, and downstream, in line with regulatory standards respectively provided by the Nigerian Upstream Regulatory Commission and Nigerian Midstream and Downstream Petroleum Regulatory Authority created by the Act.
“In addition, the Act also created a Host Communities Development Trust to be managed by Board of Trustees. As provided by the Act, 3% of the profit from the operations of oil and gas businesses will be used for the development of the host communities.
“It is noteworthy that this is in addition to the existing 13% derivation to oil-producing states and funds allocated to Niger Delta Development Commission (NDDC), which Mr. President has continuously emphasised that all the resources must be put to judicious use for the benefits of the people in the oil-producing areas.
“Similarly, Part III, Section 9 (4) and (5) of the Petroleum Industry Act provides for the creation of “a Frontier Exploration Fund which shall be 30% of NNPC Limited’s profit oil and profit gas as in the production sharing, profit sharing, and risk service contracts.”
“This is a provision made to ensure that NNPC Limited transfers 30% to the Frontier Exploration Fund dedicated for the development of oil exploration activities in all parts of the country subject to appropriation by the National Assembly. This provision will guarantee exploration activities in the country beyond discretionary decisions of the management of the new NNPC Limited.”
