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The implementation of Nigeria’s Petroleum Industry Bill (PIB) will lead to enhanced revenues for the Federal Government, according to President of the Nigerian Senate Ahmed Lawan at a forum in Abuja on Tuesday.
After passing its second reading in the House of Representatives and Senate in October, the PIB lost momentum before the end of the year, yet will be considered again for passage upon the resumption of the Senate on January 26.
“When we resume, we will start work on the PIB. That is going to be one legislation that not only Nigeria, but the entire world is waiting for because that will change our economy,” said Lawan.
Lawan likened the urgency of the passage of the PIB to that of the 2019 Deep Offshore and Inland Basin Production Sharing Contract (Amendment) Act, which combined a production and price-based royalty system to replace the existing production-based one, among other key provisions.
“We will pass the PIB that will ensure that businesses in Nigeria get a very competitive environment, in which people are able to make profit, stay and even invest more,” Lawan added. “It is absolutely necessary and incumbent on all of us leaders to apply ourselves fully to address the various challenges facing Nigerians.”
Ahead of the potential passage of the Bill, Vice President Yemi Osinbajo, in a virtual meeting organized by the Oil Producers Trade Section in Nigeria and Independent Petroleum Producers Group, urged industry stakeholders to seek ways to produce oil more cheaply to increase Nigeria’s standing in terms of production. Vice President Osinbajo also emphasized the need for a more competitive operating environment, which could be established through the passage of the PIB.
The Bill was initially proposed by the Buhari Administration in 2015, in an effort to create a more effective and transparent governing institution, establish a more competitive framework for the national oil company and create an environment conducive to investment.