The Forum of governors of the All Progressives Congress, APC has commended Nigeria’s President Muhammadu Buhari for signing the Petroleum Industrial Bill, PIB into law.
The Progressives Governors Forum, PGF made the commendation in a press statement signed by its Chairman and Governor of Kebbi State, Abubakar Atiku Bagudu.
Governor Bagudu said the signing of the PIB will move the nation to a new democratic era of governance and business management of the oil and gas industry.
He added that the new Act would improve and increase the revenue from the oil and gas sector.
According to the Governor Bagudu, the unbundling of the Nigeria National Petroleum Corporation (NNPC) in the new law will enhance better accountability.
“With Nigeria National Petroleum Corporation (NNPC) now unbundled, and in its place three new structures – Nigerian Upstream Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority and Nigerian National Petroleum Company Limited – stronger accountability structures, each with a Board drawing representation from stakeholders in the oil and gas industry is instituted. The monopoly status of the old NNPC, which vested it with both the powers of regulating the industry as well as extraction and sales of crude oil in both the upstream, midstream and downstream has been abolished.
“With the new Act, the task of regulation is vested in the two regulatory bodies created by the law. While extraction and sales of crude will now be undertaken by both the new Nigerian National Petroleum Company Limited and other private companies in both the upstream, midstream and downstream, in line with regulatory standards respectively provided by the Nigerian Upstream Regulatory Commission and Nigerian Midstream and Downstream Petroleum Regulatory Authority created by the Act.
“Part III, Section 9 (4) and (5) of the Petroleum Industry Act provides for the creation of “a Frontier Exploration Fund which shall be 30% of NNPC Limited’s profit oil and profit gas as in the production sharing, profit sharing and risk service contracts.” This is a provision made to ensure that NNPC Limited transfer 30% to the Frontier Exploration Fund dedicated for the development of oil exploration activities in all parts of the country subject to appropriation by the National Assembly. This provision will guarantee exploration activities in the country beyond discretionary decisions of the management of the new NNPC Limited” he said.
The Governors appreciated the law makers for their cooperation in passing the Bill adding that the successful passage of the Bill is a credit to the APC government.
They pledged their commitment to continue to promote a smooth relationship between the executive and legislative arms of government.
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