The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to collaborate with the private sector for effective implementation of the Petroleum Industry Act (PIA).
Dr. Chinyere Almona, Director-General, LCCI, gave the advice in a statement, she personally, signed on Thursday in Lagos.
The PIA seeks to provide legal, governance, regulatory and fiscal framework for the Nigerian Petroleum Industry and development of host communities.
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Almona said the Act marked a significant milestone in the administration of Nigeria’s oil and gas industry.
Almona noted that the Act would open windows of opportunities in the oil and gas industry, with renewed optimism for increased inflow of investments, revenue generation boost, and job opportunities.
She stated that the emergence of a more structured industry offered a level playing ground that could attract massive Foreign Direct Investments (FDIs) into the country.
“We commend the Federal Government, the National Assembly, and all other stakeholders for this breakthrough after several years of deadlock in the attempts made by successive governments to develop a comprehensive and practicable legislative framework to regulate the oil and gas industry.
“The new law has put an end to the decades of uncertainties concerning the future of the oil and gas industry in Nigeria.
“It provides a robust legal framework that will support the reforms required to position the industry as an investment haven that attracts investors from across the globe.
“This Act will also promote more competition that could bring about a more efficient system, more product choices, and lower prices in the long term,” she said.
The LCCI DG, however, noted that to reap its full benefits, the government must pay attention to the implementation of its provisions to ensure all Nigerians benefited from it.
She noted the need to create more understanding through public enlightenment about the three percent revenue allocation to host communities.
This, she said, was to forestall a misunderstanding of the government’s intentions and douse tension in the oil-producing region.
“Beyond the enlightenment, there should also be a monitoring mechanism to ensure that the allocated funds are judiciously used for the development of the host communities,” she said.
Almona also urged the government to provide clarity over the removal of oil subsidy or otherwise.
She noted that the divergent statements by different government officials on the removal of oil subsidy created uncertainty.
She added that the unbundling of the Nigerian National Petroleum Corporation (NNPC) should be done in such a way that it would not create unnecessary bottlenecks and bureaucracy in contract administration and project management in the oil and gas industry.
“The Chamber has always advocated for a fully deregulated downstream sector of the oil and gas industry and create a level playing ground where market forces are allowed to allocate resources through cost-reflective pricing.
“We, however, urge the government to engage with all relevant stakeholders and players in the sector to arrive at an inclusive deregulation policy that creates a competitive business environment where all investors can thrive,” she said.