A recent report developed by the Petroleum and Natural Gas Senior Staff Association of Nigeria has warned that delay in the passage of Petroleum Industry Bill might cause another crisis in the Nigerian oil sector.
The report explained that the delay will aggravate the anxiety within host communities of oil companies waiting to profit from PIB’s provision of 10 per cent Host Community Fund and accept accountability for sabotage of oil installations in their areas.
The report read “There is the need for an all-inclusive stakeholders’ summit involving industry operators/players; representatives of the Presidency; National Assembly; security and service chiefs; state governments; ministries, departments and agencies of the government; the Nigerian National Petroleum Corporation; the Nigerian Extractive Industry Transparency Initiative; revenue offices; Nigeria Labour Congress/Trade Union Congress; the Nigeria Union of Petroleum and Natural Gas Workers/PENGASSAN, among others.
“The summit should be aimed at harmonising the grey areas in the bill and ensuring its accelerated passage in a fair and equitable manner. While the PIB is being attended to, government must resolve the foggy issues in fiscal stability and predictability of the extant laws and the regulatory framework; uncertainty around the portfolio assets leasing to allow the operators the first right of renewal; and pending cash call on the JV operation expenditure and improved funding of capital projects.”
On June 14 the House of Representatives passed the PIB along with a number of other pending bills, but the bill did not receive the approval of the Senate before it wound down its activities.