House Begins Consideration Of Petroleum Industry Bill

House Begins Consideration Of Petroleum Industry Bill

The Nigerian House of Representatives has commenced clause-by-clause consideration of the Petroleum Industry Bill (PIB).

The bill

The bill seeks to establish the legal and regulatory framework, institutions and regulatory authorities for the industry.

It will also establish guidelines for operations of the upstream and downstream sectors.

The law also seeks to amend the Petroleum Technology Development Fund Act 2004, by providing for the establishment of its governing Board.

Chairman, House of Representatives Committee on Gas Resources, Mr. Igo Aguma (PDP Rivers Representative), while presenting the committee’s report on Thursday, said that the bill provided a clause to make the Nigerian National Petroleum Corporation, NNPC answerable to the National Assembly.

Aguma said that he proposed law would address the “frivolous amount of money'' oil companies usually claimed to be spending on their host communities.

Community to benefit

He explained that the proposed Host Community Fund in the bill would address the problems associated with petroleum exploration.

He said that adequate infrastructure had been provided to ensure a smooth implementation of the proposed law.

Mr. Mustapha Khaleel (PDP Jigawa representative), said that in view of the importance of the bill to the petroleum industry, there was a need for more time to look at it.

Mr. Sani Takori (PDP Zamfara Representative), who supported the view, added that members should be allowed to critically look at the bill to enable them to make meaningful contributions.

Clauses passed

The House passed two of the clauses and adjourned further consideration to April 19.

It also deferred the consideration of the Law of Evidence which started on March 16 to same date.

Meanwhile, the bills for an Act to repeal the Export Prohibition Act 2004 and the Nuclear Safety and Radiation Protection Act 1995, passed through the third reading.

The Chairman of the House Committee on Media and Public Affairs, Mr. Eseme Eyiboh (PDP Akwa Ibom Representative), told newsmen that the PIB was critical to the economy.

He reiterated the National Assembly's commitment to the bill, saying it contributed 98 per cent to the country’s revenue.  

2011 Budget passed

Eyiboh attributed the delay in passing the 2011 budget to adjustments forwarded by some Ministries, Departments and Agencies (MDAs).

He said that the assembly would ensure that the budget, which was put at 4.9 trillion Naira, based on a benchmark oil price of 75 dollars a barrel, the production of 2.3 million barrels of oil per day, the exchange rate of 150 naira to the dollar and a Seven percent Gross Domestic Product (GDP) growth rate, was strictly implemented by all MDAs.

NAN/Williams