- Non-passage Of Oil & Gas Sector Reforms Bills Shutting Out Investors
Nigeria is shutting out potential investors in its oil and gas sector with the delay in passing the various reforms bills expected to open up the sector for more investments.
Afrinvest West Africa Limited revealed this in a report released yesterday. The group managing director, Afrinvest West Africa Limited, Ike Chioke, presented the report in Abuja yesterday.
The report: “Reminiscent of a huge blast from the past, the oil and gas industry in Nigeria is still best by prolonged issues that are far from reaching close. The Petroleum Industry Bill (PIB) which had been in the pipeline for over a decade also gained increased traction between 2015 and 2016, as the new strategy adopted involved breaking the omnibus bill into three separate bills.
“This covers: Petroleum Industry Governance Bill (PIGB)-which provides regulatory direction, the Host Canommunity Fund-which caters to the development of host communities and the Petroleum Industry Fiscal Bill (PIFB)-which provides fiscal terms guiding oil and gas investments. The plan was that these bills would be easier to work with, as stakeholders would respond quickly to issues and resolve them, thus aiding quick passage.”
According to the report, it is almost three years after, none of the bills is yet to reach a close. “The PIGB has gained the most traction-consultations have been concluded and the revised bill is awaiting presidential assent. Yet, there is little hope of success before the elections, given that the executive has reservations about areas such as the powers of the minister of petroleum and the split of NNPC.
“Potentially, going forward, we see the bills gaining more traction if the incumbent wins the election, and a potential setback if a new party emerges and decides to tweak terms,” the report read in part.